WHY IS FOREX not moving? Here is the answer!

2021년 2월 3일

Hey tradomaniacs,

As you may have noticed the market is not moving as it should looking at fundamentals and news which is why I`m still staying aside.

A positive newsflow of economic data and very good earning reports plus a rising stockmarket are not really driving currencies as they should due to the fact possible stimulus could continue to boost US-YIELDS, which is currently in favour of the US-Dollar .

In this case we got two intermarket-correlations which are contrary making it harder for forex-pairs to move smooth and clear (especially risk-on-pairs such as AUD/USD and NZD/USD ).

Another example is USD/CAD as the market does not really know where to go as CRUDE OIL currently rises with the US-Dollar .

DXY (US-DOLLAR-INDEX) is by the way creating its first divergences looking at Momentum and indicators such as MAC-D and RSI and I`m waiting for the market either to break through the key-resistance or to create a double-top.

Bond prices and yield are by the way inversely related.

So what shall we look at?

As long as YIELDS continue to be strong with risk-on in the stockmarket we might see currencies stuck in major trend-areas.
This means we either wanna see risk-off in stocks for a bullish USD or falling YIELDS with rsik-on in the stockmarket for a bearish USD!

LEAVE A LIKE AND A COMMENT - I appreciate every support! =)


Peace and good trades
Irasor

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#Patience