What’s Going on with the USD?

Apparently, many traders are getting burned with their short USD positions.
They wonder what’s happening.
 
I think Jim Rogers said it best about the USD potentially turning into a bubble.
 
In fact, an interviewer recently asked him if the DXY is going to 110, and he said something along the lines of:
 
“That’s hardly a bubble.”
 
Just something to think about, especially if you’re shorting the USD.

Revisiting USD/NOK

For now, let’s revisit one final currency pair.

The USD/NOK.

This one in particular, had the most compelling signs on a reversal, yet I think many forex traders failed to see it.

Think convergence and divergence.

So this pair reversed around 9.000, almost on the dot, before oil prices turned around from its lows, and it’s now trading at 8.6547.

Did you catch it?

If not, and you’re looking to get in at this point, it’s safer (and more profitable) to wait for a correction, before jumping on the slide.

Revisiting AUD/NZD

In an earlier forecast post, another currency pair was on the verge of a reversal.

Yep, the AUD/NZD.

If you caught it, then you’d be happy profiting at it’s current levels at 1.09508.

It took off pretty good, like a few other pairs on the verge of lifting off with the same potential.

Anyway, if precious metals and commodities were to rise from here on, I expect we may not see these levels for a long, long time to come.

Be on the right side (not wrong side) of the trade, amigo.

Revisiting USD/JPY

About a month ago, back in December 2015, I posted signs of a USD/JPY reversal here and here.

This pair has plunged since, and is currently making a correction at 118.87.

Where is it going from here?

Probably down, down, down, but of course it won’t go down in a straight line.

If you want to get in shorting this pair at this stage, then you know the drill.

WAIT FOR A REVERSAL.

GBP/USD – Geared Up and Ready to Launch Here?

Having tumbled since June this year, down to 1.4790 today, Cable looks set to bounce hard from here.

How much lower can it go?

I can’t remember which website I was reading a few days ago, but certain economists were predicting GBP/USD going all the way down to 1.2+. lol crazy, not going to happen.

In fact, this pair is likely to go up from here, and the risk-reward at this point is, in my view, fantastic.

USD/CAD – Looking for One More Pop

Another pair that’s gone sky high.

New lows for the Canadian dollar against the U.S dollar.

No doubt, it looks really toppy at this point (same goes for NZD/CAD), but it could go for 1-2 spikes higher. And if it does? Then I’ll get into the trade.

Otherwise? Will wait for a better opportunity.

Watch oil price.

Only time will tell where this baby moves from here.

Either way, just like crossing a road, safety comes first.

USD/NOK – For Goodness Sake, If You’re Not Shorting This

One of my favourite kinds of trades to get into, is that of “extreme conditions”.

What do I mean?

Take a look at USD/NOK on your charts.

Do I hear you say holy moley!

Now, what would you do if you had my kind of trading mindset? The answer is simple. You’d place a stop just above 8.90, sit on your hands, check back in few weeks or months time, and let it ride allllll the way down from here.

Bang. Profit. Chill.

Forex trading opportunities like this don’t come everyday.

This one, in particular, is possibly once in a lifetime.

USD/JPY – Triggered

OK, so a few days ago in the previous USD/JPY post , I mentioned…

“In fact, if you haven’t gotten in on the trade at this point, and you’re looking to go short, it might be wiser to wait for a pullback back into the 122 – 124 range.”

Well, that’s exactly what we got today as the price launched up to 123.57.

Did you get in? I hope you did, because it could be all downward spiral from here.

Exciting times ahead indeed.

AUD/NZD – Reversal North

I got to say, the signals are coming fast and furious.

Just spotted another good-looking trade opportunity, and my guess is this is especially going to take off when commodities and precious metals do.

Could it drop lower? Sure, maybe a little.

But for the mid to long term (perhaps even starting today), look to the North to see pigs fly.