Following Trump's inauguration last Friday the BEARISH tone to the USD looks certain to remain and we've been SHORT SPX500 from 2264 in the belief that this market is overbought and due a correction.
With the USD declining and the Dollar Index heading south, we are expecting more dollar weakness which should boost all USD pairs although not at the same rate. With dovish noises from the RBNZD , the New Zealand Dollar may not advance as much as the GBP so each counties fundamentals need to be factored in.
We are SHORT USDOLLAR Index looking for a move down to test support at 1231. Under that opens a move down to the 200 day SMA at 1210 area.
The US market open will be particularly interesting today.
With the USD declining and the Dollar Index heading south, we are expecting more dollar weakness which should boost all USD pairs although not at the same rate. With dovish noises from the RBNZD , the New Zealand Dollar may not advance as much as the GBP so each counties fundamentals need to be factored in.
We are SHORT USDOLLAR Index looking for a move down to test support at 1231. Under that opens a move down to the 200 day SMA at 1210 area.
The US market open will be particularly interesting today.