In today’s live trading session, we went over the continuing US Dollar weakness and setups we can trade to take advantage of the depreciating currency.
The US Dollar Index continues to tumble as buyers pile on with their longs for the majors. The US Dollar Index has fallen below 94.00 and is well on its way to 93.00. In our live session, we discussed the high possibility of the DXY reaching 93.00. As a result, Gold has pushed above its all-time historic high of 1921. EURUSD followed this up with a move of its own as it pushed above 1.17000.
This week we are looking to take advantage of this Dollar weakness by longing EURUSD and Gold. These trades will be swing trades as we would like to minimize the trade management aspect of trading and capitalize the bigger long term moves. We have already entered our Euro long and are awaiting entry for Gold.
The fundamental schedule for this week is fairly clear except for the FOMC rate decision on Wednesday. The rate is expected to remain unchanged at 0.25%. We are inclined to believe this would be the case, but with the US Dollar rapidly dropping, the Fed may tweak the current monetary policy. We hope you all have a great trading week. As always, be safe and trade responsibly!
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