The daily shift between risk-on to risk-off only reinforces that watching for trend line breakouts is the best strategy for traders to use. There was a perfect example of this last session with the GBP/USD. Recall that Friday is a holiday in the US.
Gold is up on risk-off flows but stocks were up on risk-on flows. It is a ‘go figure’ moment for sure with an escalating Covid situation in the US. The US$ index has printed a third consecutive indecision candle which kind of sums up things appropriately! The GBP/USD Descending Wedge is shaping up nicely so […]
It seems like it’s a case of Us and Them at the moment. ‘Us‘ being the considered and concerned Asia pacific market region fully cognizant of the reality of the Covid recessionary environment and, then, ‘Them‘ being the US rallying on the hope of more cool-aid (stimulus) and forward looking to the post Covid era. […]
Last week: I wrote two weeks ago that the reality on Main St had caught up with Wall St and last week was somewhat similar. The escalating spread of Covid-19 has resulted in a number of US Governors pausing their wind back of social gathering restrictions and this reality-check sent renewed jitters through the markets. […]
Both FX candles are setting up with indecision style weekly candles before the markets close for the week. Keep in mind that next Tuesday marks the end of month, quarter and half year. The safe-haven flows due to increased Covid-19 concern have not been enough to help the DXY close with a bullish coloured candle.