“Don’t expect any major moves on the US Dollar to be sustained before Friday.”
The theme early this week is the continued question market around global stock indexes and their topsy-turvy price action, one day up and the next back lower. The S&P 500 is being held up by a thread keeping its head just above the 200 Day EMA on the daily chart. Tuesday saw the US stocks rally however they failed to regain the losses from Monday and the downtrend is still firmly in place as I point out in my daily video update.
The US Dollar is being held back by a push and pull scenario with the US Fed raising rates and putting upward pressure on the greenback, however, political tensions surrounding Trump’s trade war and tariffs is holding back the world’s most actively traded currency. Traders will be eyeing Trump’s Twitter feed this week as it is rumoured the US will announce $50 to $60 Billion of tariffs on Chinese imports. This has the potential to weaken the US Dollar as it would cause economic instability in the short term. Don’t expect any moves on the US Dollar to be sustained until after Friday’s Non-Farm Payrolls report.
The Reserve Bank of Australia kept the official cash rate on hold at 1.5% when it released its latest statement on Tuesday and gave no real indication on what it will do with interest rates over the longer term. The local currency tried to rally post the RBA statement, however, traders sent it back into its current downtrend once the European and US trading sessions began. The path of least resistance for the AUD is to the downside so any rallies higher to resistance levels should be viewed as shorting opportunities and in today’s video report I touch on the opportunity to use the price rejection strategy on the 1 hour as well as the 4-hour charts.
Have you watched Video #1 and Video #2 in our week-long video series How to Break Bad Trading Habits?
Click here for Video #1
Click here for Video #2
Video #3 will be released later today.
About the Author: Andrew Barnett
Andrew is a professional trader and successful investor who has a strong focus on education. He is a regular Sky News Money Channel Guest and one of Australia’s most awarded and respected financial experts and is regularly contacted by the Australian Media for the latest on what is happening with the Australian Dollar. Director at LTG GoldRock, Andrew Barnett, guides thousands of traders around the world in the live market on a daily basis, advising them on buy and sell directions, as well as trading his own personal account. Andrew, a regular keynote speaker at trading and wealth-creation events throughout the Asia Pacific region, is an authorized representative registered with the Australian Securities and Investment Commission (ASIC).
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