Wednesday, September 24, 2014

King Dollar, time to be dethroned?

The dollar is trading pretty much at 2014 highs, just above the mid 2013 highs and slightly higher than the mid 2012 highs. I don't know, but this move just feels too fast for me. From the longer term perspective, Market Anthropology has a good chart for me:

This is another similar chart from Trading Channels but it put the USD in a channel, rather than a triangle. The triple resistance highlighted is significant I feel, along with the overbought RSI(14), so I am really watching any further upside carefully, to see if it is sustained or looks weak.

It's been a while since I've "played" FX, but this dollar trend is just crazy parabolic. I'm trading with my "fun" money, because I feel like I need a shot of adrenaline in my life quite now. I'm selling USD/SGD at 1.2682. If the trend line is broken to the upside, I will be covering my short and looking for a re-entry short at the triple top around 90 on the DXY.

Oh nothing to see here, just being a punter here and logging in my trade. I have to say, FX is not my expertise at all, but I have been watching the dollar quite closely for a while now!

On a more practical sidenote, perhaps if you have any USD you might want to consider changing it to SGD now, the rate looks pretty good! I actually have a few USD lying around, maybe I will pay a visit to the money changer soon and "execute" a real-life short USD/SGD transaction, haha!

1 comment:

  1. Fundamental Analysis is essential to your trading success as it helps you to assess how economic and political indicators affect the market


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