HAS THE DOLLAR REACHED ITS PEAK? AND WHY IS THIS IMPORTANT?
If you check correlation with other assets, be it Gold, stock indices, other currencies or commodities, you will see how they are massively correlated (from 60% to even 95%) with gold.
This, first of all, tells you that
1) basically all your investments depend on the answer to this question as the dollar is the king of the markets now and
2) trading XAUUSD Long and EURUSD Long means basically entering the same trade (with implications on risk management and diversification)
According to the info we have now, not only the reversal point from the FED is far (the point at which interest rates will be decreased), but we also not at the interest rate peak yet (which should be 5% in March 2023 according to the corresponding future price). It is true that markets are ahead, but in this case, it seems they are too ahead.
According to this. and as shown in the chart, I expect that, with the data we have so far, the DX could easily be in the retracement phase before reaching the ATH again or even beyond.
BTW, the dollar index DX can be traded directly in the platform as per my description or indirectly via any of the instruments highly correlated with it (basically all).
This, first of all, tells you that
1) basically all your investments depend on the answer to this question as the dollar is the king of the markets now and
2) trading XAUUSD Long and EURUSD Long means basically entering the same trade (with implications on risk management and diversification)
According to the info we have now, not only the reversal point from the FED is far (the point at which interest rates will be decreased), but we also not at the interest rate peak yet (which should be 5% in March 2023 according to the corresponding future price). It is true that markets are ahead, but in this case, it seems they are too ahead.
According to this. and as shown in the chart, I expect that, with the data we have so far, the DX could easily be in the retracement phase before reaching the ATH again or even beyond.
BTW, the dollar index DX can be traded directly in the platform as per my description or indirectly via any of the instruments highly correlated with it (basically all).
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Or simply you don't want to risk it?
Trade forex, oil, crypto, indices, and keep 80% of the profits you make, while losses are covered!
Check it out now → ftmo.com/en/?affiliates=2427
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