Weekly Forex Forecast: DXY reverses lower on FOMC & clears the way for XauUsd & Bitcoin to rally [Video]
|Markets covered in this week’s Weekly Forex Forecast:
USD (DXY), EurUsd, UsdChf, GbpUsd, UsdJpy, Crude Oil (WTI), CadChf, AudChf, NzdChf, AudJpy, NzdJpy, GbpAud, SPX (S&P 500), Nasdaq, Dow Jones, Nifty, XcuUsd (Copper Analysis), XauUsd (Gold Analysis), XagUsd (Silver Analysis), Btc/Usd ( Bitcoin Analysis).
Weekly Notes:
Last weeks FOMC meeting saw the DXY sell off and post a near term bearish reversal, setting up what looks to be the key theme coming into a new week of trading.
The DXY reversal last week looks like the catalyst needed to send the DXY to 88.46 (our long term stated target in the DXY) with Stocks, as well as Commodities, looking set to benefit from any DXY sell off into Setember. DXY weak set us are favoured this week as a result.
Along side a weaker US Dollar, the Australian Dollar still lags amongst the major currencies and has failed to find a boost as would normally be the case with a weaker DXY environment. Headwinds out of China and severe Australian lock down measures are keeing the Australian Dollar supressed. We have noted the Australian Dollar as being the best currency to short over the last month or so and it has consistantly underperformed during the recent period. As a result, I still see the Aussie as good short this week as well, along side the Dxy.
The Canadian Dollar has rallied alongside Crude Oil recently, however, it is not out of the woods yet and AUD, CAD & NZD look like they still have more downside vis-a-vis the CHF & JPY. As a result, AudChf, AudJpy, CadChf, CadJpy, NzdChf & NzdJpy are all on the radar this week for possible shorting opportunities.
This week also sees Australian and UK Interest Rate Decisions which should be factored into any trading plan for the coming week.
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