Dollar Bulls Beware
Forex Trading Week of October 22nd through October 27th
Everyone is excited about the greenbacks surge last week. As a currency trader I really would like to buy into the concept of a strong dollar because it would make my trading life a lot easier! But I can’t quite buy into it yet. With the selection of the new fed chair looming it looks like it may come down to Yellen or Powell. Both of these candidates are dovish on the dollar, and so is Trump. With inflation still low I believe the end game is to keep interest rates low with a possible hike in December (already priced in). We shall see though! My trading idea for the week.
AUDUSD Long (Entry 77.80 / Stop .7730 / Target .7930)
This is a longer term trade and I’m waiting for a pullback to enter this trade. There is strong demand at this entry price and Australia’s economic reports should be good this week. Technicals and Fundamentals match up so its a go. Have a happy trading week everyone!