While many traders try to understand the current market environment, many believe trading is harder than ever this year because a dollar collapse is on the rise. The reality of that is probably correct, but it won’t be anytime soon as we have seen how the Federal Reserve Bank has pushed up the stock market to record levels and the dollar will be no different.
The real issue is the unpredictable event that will send these markets into a spiral before the elections are done. Imagine a scenario like what we saw with Beirut, but this time instead in London or New York. This would send markets into almost free fall but the great thing about it is that the trading conditions become so easy, with large trending environments.
In the meantime, expect a stronger dollar and weaker foreign currencies as the banks seek to wipe out gains and take out traders that are trying to buy right now.
Our target is 1.1755
We will be watching to see if the EURUSD trades lower from the start of the day or if they make a run-up before, what we will need to see is if we trade higher first if we can stay below this line at 1.1973
Our target is 1.3300
With GBPUSD there is still one price level objective on the upside in this pair so although we expect lower prices, be mindful that we could see this pair run up one last time before we begin trading lower.
Our target is 1.3265
This pair has fulfilled its objective on the downside and we will be expecting higher prices over the day but we will allow prices to draw back one last time. If we go below the low and close on a 1-hour basis then we will need to review if there are reasons to trade lower on the day
Our target is 1900.70
This asset much like the dollar has fulfilled its objective and every trader is now trying to buy gold, so we will look to see this asset trade lower over the course of the day