2023-08-22 • Updated
Emerging market countries, including the BRICS bloc, are expressing frustration with the US dollar's dominance in the global financial system. While there have been discussions about creating alternative currencies to challenge the dollar's dominance, no concrete proposals have emerged. Instead, these countries are considering expanding trade using their own currencies to reduce reliance on the dollar. Critics from emerging economies are especially worried about the US using the dollar's influence for imposing financial sanctions and the destabilizing impact of dollar fluctuations on their economies, including increased costs for repaying dollar-denominated loans and purchasing imported goods priced in dollars. Let’s see how the technical factors align.
The bullish move on the US Dollar seems to be finally wearing off, albeit slowly. At the moment, price appears to have broken out of a wedge pattern on the 4-Hour timeframe, which could suggest the onset of a bearish move that could slide as low as the 50% of the Fibonacci retracement. Other confluences on this include:
Analyst’s Expectations:
Direction: Bearish
Target: 102.621
Invalidation: 103.771
EURUSD has reached a demand zone that overlaps with trendline support and could be well considered within the area of the 50 and 100-period moving averages. The demand zone can also be considered to have occurred within the range of the 88% of the Fibonacci retracement zone. These confluences point towards the likelihood of a bullish impulse.
Analyst’s Expectations:
Direction: Bullish
Target: 1.11655
Invalidation: 1.08350
Price action on GBPUSD has now completed a rejection from the demand zone and seems very clearly poised for a bullish movement. As deduced from the charts, we can see price has made a move away from the 88% of the Fibonacci retracement (which is a key level), and coupled with the confluences from the trendline support, the demand zone, the 100-period moving average support, and the bullish array of the moving averages.
Analyst’s Expectations:
Direction: Bullish
Target: 1.28760
Invalidation: 1.25872
The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.
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Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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Don’t waste your time – keep track of how NFP affects the US dollar and profit!
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