💡The media has been flooded non-stop with the US-China ‘trade talks’ later more headlines about Theresa May’s resignation, then how Uber failed investors (like we did not know about it), add Boeing covered stories and finally Trump’s impeachment rumors. But…what about the US Dollar pullback know one talks (care) about? Isn’t it a story that makes more sense to traders and investors. Could this be it and the big break ’emerging market’ currencies needed (include the Euro and maybe GBP) Let’s take a look and see where our team at Market Traders Daily see the greenback trading in 11 weeks from now.
📄 Short US Dollar Index | Trading Scenario [filled @ 97.40]
📌On May 14 via Twitter, we communicated with other professionals, our short DXY trading idea. The duration of this trade is about 12-weeks. We have 1 week in the trade.
📌The exit level is 98.80. As Bloomberg reported in January, Goldman Sachs was looking for some US dollar weakness after Jerome Powell’s declarations. The truth of the matter is the Federal Reserve had little power over the greenback in the last 5 months and the index moved above previous highs.
📌All in all, the cost of shorting the US Dollar Index is so high that Hedge Funds have avoided the temptation to go for it. However, our analysis is a roadmap to time entries in US pairs which are less worrisome in the cost front.