2020-06-02 • Updated
Has the US dollar lost a top position forever?
According to Goldman Sachs strategists, now is the perfect time to go short on the US dollar. Perhaps, you’ve noticed it already as USD dropped against almost every currency. Investors prefer EUR and riskier currencies such as AUD, GBP and CAD.
The first reason is that economies are reopening outside the USA, while there are violent protests and looting in most American cities. The devastating situation increases chances of the second coronavirus wave and further loss of economic activity. It makes the further recovery more complicated. All those factors pushed the US dollar down. However, there is no way it will last forever. The US dollar will bring its positions back one day, but in short term it’s a good idea to consider selling USD.
Goldman Sachs analysts believe European currencies should be the most attractive for investors these days. Europe has really started coming back to normal life. There are steady reopening process and decreased rates of new coronavirus cases in Europe. Moreover, the ECB gives a great economical support to all the countries of Eurozone by its EU recovery fund with additional 750 billion euros.
For example, look at EUR/USD. It keeps rallying. The price approaches the resistance at 1.117. It has struggled to cross that level few times in March. If it manages to break through it, it will clear the way upward to 1.121. Support levels are 1.11 and 1.10.
Crude oil futures surged on Monday due to disruptions in Russian refining capacity caused by Ukrainian drone strikes and Moscow's decision to cut output to comply with OPEC+ targets. The West Texas Intermediate (WTI) contract for May settled at $81.95 a barrel, up $1.32, while the Brent contract for May settled at $86.57 a barrel, also up $1.32. Russia instructed...
Bearish scenario: Sales below 80.00 with TP1: 79.60... Anticipated bullish scenario: Intraday purchases above 80.70 with TP: 81.50...
Bearish Scenario: Sales below 78.99 with TP1: 77.93, TP2: 77.45, and upon its breakout TP3: 76.56 and TP4: 75.70 Bullish Scenario: Purchases above 78.00 (wait for a pullback to this area) with TP1: 1679.00 (uncovered POC*), TP2: 79.33, and TP3: 79.66 intraday
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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Don’t waste your time – keep track of how NFP affects the US dollar and profit!
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