The dollar index chart (DXY) hit 100 this week (100.19 to be exact), its highest level in nearly two years. Largely helped by a ‘hawkish’ (think more aggressive) Fed, the EUR/USD pair in particular saw a strong sell-off. This week’s minutes of the Fed’s (March) meeting showed “many” participants were prepared to raise rates in 50-basis-point increments in coming months. All to-do with fighting the rampant inflation….
I suspect the dollar might find some serious resistance at this level, but if it does manage to break through start looking at the 103 level. What this could mean for dollar pairs in the forex market are pullbacks to ‘better’ entry areas. Remember we are predominantly looking to trade with the trend.
By all accounts the French elections seems to be too close to call and along with the continued war in Ukraine this could be a perfect storm situation for a much weaker Euro.
The markets seem to not like a potential Le Pen (main candidate) presidency and many stakeholders seem to now have already started making precautions.
If you were/are planning to trade a Yen pair, keep an eye out for any news regarding the bank of Japan this week as there are reports that they might intervene to keep rates low in Japan. Have a look at this recent article from Reuters…”Yen falls likely won’t prod BOJ to change policy…”
A busy week this week with regards to news, starting on Sunday with the French elections, this could create some serious volatility in the Euro, depending on the result. There is also inflation news from the U.S and U.K, interest rate news from Canada and New Zealand as well as employment news from Australia. The big one, however, are the retail sales figures from the US on Thursday. Higher than expected figures could really see the dollar strengthen.
++++++++
Trade for clients & receive a substantial profit share
If you want to receive a substantial profit share you only need to make 3 to 5% per month. You can find a copy of the brochure here: Trade for Clients
++++++++++++++
MAJORS
EUR/USD: Bias is to short, but I need a better entry zone. I’m looking at 1.1400 on the daily and possibly 1.1050 on the 4Hour. Where it currently is could be interesting for countertrend trades, but I personally wouldn’t go ‘against’ the dollar this week.
USD/CHF: 0.94300 is the key area to keep an eye on. Countertrend setups from this level or a break out of this level for a possible huge move up. If it gets back to 0.92300, I’d look to long.
GBP/USD: I’d like price to retest 1.33800 in order to short.
AUD/USD: I’d start looking for longs on the daily or around 0.7360. My bias is till a stronger AUD due to stronger commodities.
NZD/USD: Stuck between the ema’s at the moment. It needs to make its mind up with either a break up or a break down.
USD/JPY: ‘No man’s land’ at the moment. I’d start looking for longs at 118.500 on the smaller timeframes.
USD/CAD: Big Canadian news this week, so be careful. I’d look to short from around 1.2630
CROSSES
EUR/GBP: Possible short at 0.84700 on the 4hour. 0.86000 is still my main area to look for a short.
GBP/AUD: Far from anything, but look at 1.8100 on the smaller timeframes.
GBP/NZD: Looking to short from 1.9500 based on the weekly.
AUD/CAD: 0.92800 for a long. (Again, be careful, CAD and AUD news this week).
AUD/NZD: 1.0700 for a long.
YENS: Still too far away from anything in order to trade with the trend. Most are in interesting areas for countertrends.
As always, remember correlation!
We are NOT a “tipping service” our aim is to teach you how to trade for yourself.
Watch the video below for more detailed explanations of this week’s analysis and trade plan:
None of the Forex Mentor Pro team nor its owners (expressly including but not limited to Marc Walton), officers, directors, employees, subsidiaries, affiliates, licensors, service providers, content providers and agents (all collectively hereinafter referred to as “Forex Mentor Pro ”) are financial advisers and nothing contained herein is intended to be or to be construed as financial advice
Forex Mentor Pro is not an investment advisory service, is not an investment adviser, and does not provide personalized financial advice or act as a financial advisor.
Forex Mentor Pro exists for educational purposes only, and the materials and information contained herein are for general informational purposes only. None of the information provided in the website is intended as investment, tax, accounting or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement, recommendation or sponsorship of any company, security, or fund. The information on the website should not be relied upon for purposes of transacting securities or other investments.
You hereby understand and agree that Forex Mentor Pro, does not offer or provide tax, legal or investment advice and that you are responsible for consulting tax, legal, or financial professionals before acting on any information provided herein. “This report is not intended as a promotion of any particular products or investments and neither Forex Mentor Pro group nor any of its officers, directors, employees or representatives, in any way recommends or endorses any company, product, investment or opportunity which may be discussed herein.
The education and information presented herein is intended for a general audience and does not purport to be, nor should it be construed as, specific advice tailored to any individual. You are encouraged to discuss any opportunities with your attorney, accountant, financial professional or other advisor.
Your use of the information contained herein is at your own risk. The content is provided ‘as is’ and without warranties of any kind, either expressed or implied. Forex Mentor Pro disclaims all warranties, including, but not limited to, any implied warranties of merchantability, fitness for a particular purpose, title, or non-infringement. Forex Mentor Pro does not promise or guarantee any income or particular result from your use of the information contained herein. Forex Mentor Pro.com assumes no liability or responsibility for errors or omissions in the information contained herein.
Under no circumstances will Forex Mentor Pro be liable for any loss or damage caused by your reliance on the information contained herein. It is your responsibility to evaluate the accuracy, completeness or usefulness of any information, opinion, advice or other content contained herein. Please seek the advice of professionals, as appropriate, regarding the evaluation of any specific information, opinion, advice or other content.
Marc Walton, owner of Forex Mentor Pro, communicates content and editorials on this site. Statements regarding his, or other contributors’ “commitment” to share their personal investing strategies should not be construed or interpreted to require the disclosure of investments and strategies that are personal in nature, part of their estate or tax planning or immaterial to the scope and nature of the Forex Mentor Pro philosophy.
All reasonable care has been taken that information published on Forex Mentor Pro website is correct at the time of publishing. However, Forex Mentor Pro does not guarantee the accuracy of the information published on its website nor can it be held responsible for any errors or omissions.
