This is a quick look at where I’m looking for my next trade entry.
This scenario suggests that USD has not yet found its intermediate term low, and that we’ll see another substantial leg down “first”.
USD_May_21_Forex_Kong
On the flip-side USD breaks upward, breaking though the 50 SMA ( now clearly pointing lower ) and heads for the highs..only to stall out there and spend “eternity” flopping around at similar levels.
You’ll have to appreciate that all the fuss about Eur/Usd is just more “retail propaganda” manufactured by the financial / foreign exchange industry to have you trading the pair “thinking” you’ve got an edge or an advantage. These are the planets two most widely held “reserve currencies” and will always “flip and flop” based on simple market mechanics.
Pull a monthly chart of EUR/USD and realize the pair can trade in as wide a range as .40 cents! Without a single “meaningful repercussion” to either economy. There is no “fundamental reasons” to track the pair…..and I rarely trade it.
Retail flock to it….as the media would have you. Silly.
If USD turns “on cue” you’ll have to expect U.S Equities to do the same…. but then again….I’ve been saying that for a looooooong time now.
The “range grind” continues.