USD closed above key level with upper space opened!
USD is the best performing currency against its major peers, excluding CAD. The 1 week relative performance against major ones are as below:
AUD:-0.39% GBP: -0.67% NZD:-0.98%
EUR:-1.34% JPY:-1.71% CHF:-2.32%
The major reason behind in my opinion is the strong economic growth amid Fed's easing monetary policy. There're tons of reasons of soft dollars, but when it came to chart, it's pretty clear that key level has been penetrated with a new range formed. Now the upper boundary 94.69. So what does it mean for traders and asset allocators?
1. When dollar strengthens, assets priced in USD tends to fall, e.g. commodities, stocks. Of course, there're times that USD and those assets move in the same direction. However, there is a strong negative correlation between USD and other asset classes. Now, dollar is going up with a surging US 10Y yield, bad for bullish buyers, especially in the past two weeks. So check your portfolio and lower your leverage. The volatile may kill you.
2. Forex & commodity traders: USD pullback is likely to happen as the new range was just formed. Looking for forex setups on bullish dollar. Be careful on shorting gold(holding for months), as the inflation is expected to go up. Gold will be strong again to hedge the inflation risk when CPI rises above say 2%. If you're a day trader, just look for patterns(long or short) that works for you. Often, I identifies excellent short setup on 1 minute chart inside a bullish hourly or daily support zone.
3. Fixed income traders: Normally institutional investors are active in this field, e.g. pension fund, sovereign fund. Strong dollar and high treasury yield will attract their attention. Funds may flow out of emerging markets that hit both the local stock and bond markets.
No matter what your view about market is, the year of OX won't be an easy year. Recently, I push my team to sell insurance products to clients. A lot of deals have been done so far. Amid market uncertainty, a guaranteed 2.5% p.a. comfort clients.
If you have decent return since March of last year. Rebalance your portfolio, realize your gains and build up your safe net might be good to help you have a sound sleep at night!
AUD:-0.39% GBP: -0.67% NZD:-0.98%
EUR:-1.34% JPY:-1.71% CHF:-2.32%
The major reason behind in my opinion is the strong economic growth amid Fed's easing monetary policy. There're tons of reasons of soft dollars, but when it came to chart, it's pretty clear that key level has been penetrated with a new range formed. Now the upper boundary 94.69. So what does it mean for traders and asset allocators?
1. When dollar strengthens, assets priced in USD tends to fall, e.g. commodities, stocks. Of course, there're times that USD and those assets move in the same direction. However, there is a strong negative correlation between USD and other asset classes. Now, dollar is going up with a surging US 10Y yield, bad for bullish buyers, especially in the past two weeks. So check your portfolio and lower your leverage. The volatile may kill you.
2. Forex & commodity traders: USD pullback is likely to happen as the new range was just formed. Looking for forex setups on bullish dollar. Be careful on shorting gold(holding for months), as the inflation is expected to go up. Gold will be strong again to hedge the inflation risk when CPI rises above say 2%. If you're a day trader, just look for patterns(long or short) that works for you. Often, I identifies excellent short setup on 1 minute chart inside a bullish hourly or daily support zone.
3. Fixed income traders: Normally institutional investors are active in this field, e.g. pension fund, sovereign fund. Strong dollar and high treasury yield will attract their attention. Funds may flow out of emerging markets that hit both the local stock and bond markets.
No matter what your view about market is, the year of OX won't be an easy year. Recently, I push my team to sell insurance products to clients. A lot of deals have been done so far. Amid market uncertainty, a guaranteed 2.5% p.a. comfort clients.
If you have decent return since March of last year. Rebalance your portfolio, realize your gains and build up your safe net might be good to help you have a sound sleep at night!
Commentaire:
Momentum looks strong.
plan your trade and trade your plan
