We’ll see a pullback in USD here as, on a purely technical level ( looking at smaller time frames such as the 4H and 1H ) she’s extremely overbought.
Considering the over all volatility this “counter trend move” may also prove to be quite dramatic / powerful as “yet again” late comers ( as I see it – pretty much the entire financial blogosphere ) chase a train that’s already left the station.
It’s “buy the dip time” in USD.
Commodities got smoked here as suggested, but in all – gold itself has held up “reasonably well”.
I knew this move was going to be powerful ( although the general “silence” here at the blog “trade wise” has me thinking that most of you didn’t buy that ) and now find myself booking huge profits – looking for re-entry.
I hate to say it but……Thursday is a long way off, and I have a sneaking suspicion we’re not going to see much “tradable action” early in the week.
With some decent numbers out of China over the weekend I expect a little “bouncy bouncy” in AUD and perhaps risk in general as USD pulls back a touch before making the next leg higher.
You’ve really got to be nimble these days to bank profits, and get set for the next short-term move, as “buy n hold” or “sell n hold” for that matter just might have you “holding a bag”.
Stay safe people…and trade within your means.