MOVING WITH PURPOSE - Hope everyone enjoyed the market long weekend. Clearly there wasn't much volatility in Monday trade and so, we are finally back at it today. Looking at the price action over the past several days, it's clear I was too patient and missed the recovery rally in the Buck. But I'm ok with that. These things happen and we just move on to the next opportunity. The truth is, we may yet still see some Dollar selling, although the break back below the previous neckline of the EURUSD double bottom in the 1.1050 area, and the surge in USDJPY back towards 122.00, suggest there is a legitimacy and purpose to this Dollar move. I don't chase trades and won't be jumping on the Dollar now that it's moved a nice amount. But it does look like the Dollar is trying to reestablish itself.

DELAYED REACTION - As far as the trades go, I have jumped back into an SPX500 short at 2126. Since exiting for a loss the other week, the market has shown no ability to follow through with the latest record high break, and the pullback once again encourages the prospect for some form of a meaningful top. Fundamentally, the trade lines up, with last week's hotter US CPI print and comments from the Fed Chair that a rate hike in 2015 is still on the table, supporting the bearish case. I'm not sure the market has fully reacted to the events of last Friday, given the holiday weekend, and perhaps we will see some reaction in today's trade that opens a breakdown in stocks. Otherwise, I'm considering a long EURGBP trade and will be looking to buy back into AUDNZD on a dip into the 1.0500s.

This analysis is for informational and educational purposes only. This is not a recommendation to buy or sell anything. MarketPunks is not a financial advisor and this does not constitute investment advice. All of the information contained herein should be independently verified and confirmed. Please be aware of the risks involved with trading in currencies, stocks, commodities, cryptocurrencies and sports. Do not trade with money you cannot afford to lose. It is recommended that you consult a qualified financial advisor before making any investment decisions.

Recommended Content


Recommended Content

Editors’ Picks

AUD/USD recovers further toward 0.6800 on risk-recovery

AUD/USD recovers further toward 0.6800 on risk-recovery

AUD/USD extends recovery toward 0.6800 in Asian trading on Thursday, despite mixed Australian employment data. The Aussie cheers a return of risk appetite, which weighs on the post-Fed US Dollar recovery. All eyes now remain on US economic data for fresh impetus. 

AUD/USD News
USD.JPY reverses sharply from 144.00, as US Dollar recovery fizzles

USD.JPY reverses sharply from 144.00, as US Dollar recovery fizzles

USD/JPY is attacking 143.00 in Thursday's Asian session, reversing sharply from 144.00. The pair pares back gains in tandem with the US Dollar, as the latter's post-Fed recovery falters due to a rebound in risk sentiment. The focus is next on the US data due later today and Friday's BoJ decision. 

USD/JPY News
Gold price regains positive traction amid a modest USD pullback from one-week high

Gold price regains positive traction amid a modest USD pullback from one-week high

Gold price attracts some dip-buying during the Asian session on Thursday and seems to have stalled its retracement slide from the $2,600 mark, or a fresh all-time peak touched the previous day. The US dollar trims a part of its intraday gains to a one-week high, which turns out to be a key factor lending support to the commodity.

Gold News
Bitcoin surges to $62,000 mark after 50 bps Fed rate cut

Bitcoin surges to $62,000 mark after 50 bps Fed rate cut

Bitcoin and Ripple eye for a rally as they break and find support around their resistance barrier. Meanwhile, Ethereum demonstrates signs of recovery as it approaches a critical resistance level, indicating that an upward rally could be on the horizon if it successfully breaks through.

Read more
Australian Unemployment Rate expected to hold steady at 4.2% in August

Australian Unemployment Rate expected to hold steady at 4.2% in August

The Australian Bureau of Statistics will release the monthly employment report at 1:30 GMT on Thursday. The country is expected to have added 25K new positions in August, while the Unemployment Rate is foreseen to remain steady at 4.2%.

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Majors

Cryptocurrencies

Signatures