Where is the next step for the dollar index?

by Forex March. 05,2023
Where is the next step for the dollar index?

From the disk perspective, the US dollar index is still rising. If nothing else, it would not be a problem to hit a new high today. Many people are puzzled as to why the U.S. dollar index will continue to rise, because in terms of the global situation, it seems that there is no supporting factor for the U.S. dollar index, that is, the U.S. dollar index cannot be effectively supported, so why does the U.S. dollar index continue? Go higher? What is the reason?

For this point, the school has explained before that it is the promotion of market demand. This market demand is composed of "technical, fundamental, economic, and geopolitical." It is a complex complex. As for which The real effect of the element needs to be judged according to the actual situation. It is not a trick to eat all over the world, but a process of dynamically finding a balance. Therefore, it is difficult to make a clear judgment on the dollar index at this stage.

In fact, in the analysis yesterday, Lieutenant Colonel emphasized that the trend of the US dollar index will not be so smooth, because the demand is unstable, so we must beware of the sudden turn of the market and sweeping the market; and as time goes by, as expected, there will be a rebound in the European market. The market situation, and once made the school think that the US dollar index is about to reverse. After all, the US dollar index has gone a long way and has a certain reversal demand. Therefore, the strategy given yesterday can only be biased towards caution, but it also missed the advancement. Opportunity, the profits that should be earned flow away in vain, which is really depressing.

Looking at today’s trend, the market bulls are quite positive, which can also be seen from the market trend; however, the school is also thinking about a question: Will there be a sweeping market again today, or will it go straight out of the first move? After suppressing the market, strangling retail investors and institutions in the market... this possibility is entirely possible and cannot be completely ruled out. Therefore, in the face of today's market, we must be cautious and careful. After all, the face of the market is now a commonplace. If you are not careful, you may suffer losses and become annoyed.

At the operational level, today we can only treat the current market with a cautious point of view. After all, the fundamentals have not given clear guidance, and there is no important data released. At this time, the market operation is completely stimulated and promoted by market demand, so it is very likely to happen. Temporary abnormal fluctuations have resulted in the strangulation of retail investors and institutions; therefore, we can only deal with it with cautious thinking and careful layout today to deal with the current sudden changes in the market for reference!

Trading straregy:

EUR/USD:

Although from a technical point of view, Europe and the United States are typical short positions, they should find opportunities to short; however, the current market is not simple, and there is no simple layout. We can only give cautious short-selling advice on rallies, and the market will do as soon as the opportunity is given. Just wait and see, Wesang:

Short selling in the 1.1780-1.1790 range, stop loss 20 points, target 1.1760, 1.1740, 1.1720.

AUD/USD:

Although there are some operational opportunities for the pound and the United States, the risks are obviously higher than the returns. Therefore, the second operation currency pair today is to choose Australia and the United States for trading. Give cautious short-selling advice on rallies, do as the market gives you a chance, wait and see if you don’t give it a chance, and do it in a light position:

Short selling in the 0.7350-0.7360 range, stop loss 20 points, target 0.7330, 0.7310, 0.7290.

gold:

From the perspective of the gold disk, it is clear that it has been caught in a shock. The ups and downs are interference, resulting in no sense of direction. Therefore, it is difficult to immediately judge how gold should go next.

However, in the face of shocks, there are corresponding shocks. We try our best to choose valuable points for layout, and the market will do it when given the opportunity, and wait and see before the opportunity is given. Weak warehouse:

Buy in the 1799-1800 range, stop loss at $2, target 1803, 1806, 1809