Well well well…..it looks as though USD has finally, FINALLY found its bottom.
I can pull out a number of fantastic correlations / trades in the currency market ‘specific to USD’ but at this point in time…..the general market movement / usual correlations will be saved for another day – as we’ve all seen a number of these fall apart as of late.
Gold has fallen consistently “with” USD which in most cases makes no sense, tech stocks have been clobbered and considering the buoyancy in markets in general….have NOT been actively participating.
EUR/USD pretty straight forward here: SAFE TO SHORT
Markets continue to trade in “good ol summer fashion” leaving most traders scratching their heads looking for direction.
It’s nuts out there! You know it, I know it.
You’d think an intermediate bottom in USD would send Gold decidedly lower…but even there….gold has landed near an area of support so…..we’ve got some “rotation” going here, and need to take the time to figure out – WHERE IS THE MONEY GOING NEXT?
Risk trade in AUD/JPY would appear to have hit resistance but…..nothing to write home about.
It “almost looks to me” like a bottom in USD might amount to more U.S stocks being sold, and in turn US dollar reserves moving higher, while gold stays flat but….that’s pure speculation.
We need another day er two to see how things unfold from here. I’m short EUR/USD – and that’s it!