There will come a time in our “not so distant future” that I will shift my trades and longer term strategy to consider a strong USD. Not today though.
I ‘d originally posted / suggested that perhaps some time late Sept, that USD would finally find its near term low – and “do what currencies do” making a solid move in the opposite direction. The surge in USD buying over night will have taken out a large number of smaller players , and has also left me in the red on a couple of outstanding trades. Is this the start of the “real move” higher in USD? I don’t think so.
Yes we’ve seen a trend line breached, and yes the “likelihood of war” could certainly be the event that spurs true safe haven positioning ( of which USD still acts as the world’s reserve currency so…. ) – this still remains to be seen.
Does the “suddenly positive” data released this morning on U.S GDP as well unemployment claims have anything to do with it?
Would the fact that “gold has swung low on a monthly chart” ( a fairly significant dynamic when price has moved higher than last month’s high) provide an interesting point / price area to “shake the tree” a bit? Makes sense to me.
The key is not to make any big decisions until the picture is made clear. If a single day’s trading doesn’t go your way, drastically affecting your account balance – you’re trading far to large / leveraged.
We don’t do that around here.
I’ll let this “sell back off” and see where things sit later in the day / evening. My “hunch” is we’ve seen a lil surge/wiped a pile of small traders off the map, and that things will continue in the same direction.