The near term strength in The U.S Dollar ( although still no higher than 5 days ago…. ) is a ramp into the proposed rate hike and a clear “sell on the news” trade. It’s so obvious. Staring you right in the face as Gold’s near term slide looks to FINALLY end – in the congestion zone around 1200.00
Looks pretty clear to me, as per the previous post and information provided by James Rickards. A “nominal rate hike” with stocks at all time highs ( when else could these bozos possibly even consider it ) and perhaps a short-term “extension” of this ridiculous euphoria….then reality, as both stocks and The U.S Dollar hit the skids.
- USD/JPY should hit resistance around 114.85-114.95 and that will be that.
- EUR/USD is perfectly fine here around 1.0525-1.055 ( as it’s STILL above 1.05 despite USD bounce )
- AUD/JPY ( our “risk barometer” ) hasn’t even budged. No breakout. No nothin so…..
Don’t get too excited. Nothing has changed except of course – further bad news on trade deficit with China and of course…..Trump instability / Tweetfest and generally nuttiness – still on the rise.