What's next from this point.
The month of June signals the start of quarter three based on the quarterly theory.Q3 is also referred to as the distribution phase or expansion.Given that information we expect to see expansion in majority of the market charts.
Our main focus is on DXY( Dollar index) which we pair against a basket of other currencies to get more insight on the foreign exchange market.We have witnessed a weak dollar in recent times. Weak is not an understatement as this is the poorest it has performed in recent years. The current prices were last seen during the covid era and has been used as baseline support for the pair in recent times.There have been a number of reasons for this and some carry more impact than others. Trade wars between the US and China have had the most impact and have been shaping up Trump's first year of his second term as president. Then lately we have witnessed the rising tensions in the middle east and feud between Islamic states and Israel.
We cannot foretell how lower we will go but we can keenly follow through the structures being broken and major price points being respected which will serve as indicators to the direction taken by the dxy.
With a calmer economic environment and support of strong economic data then we expect the dollar to rebound and propel higher. Not a full rebound but a play in the range between current lows and 102 which serves as the high for the previous two months.But if the current political turmoil persists and involvement of the US government in the middle eastern conflict then this will lead to an economic shakedown and an unpredictable dollar.
I hope this information will serve as a guide through this quarter. # SAFE TRADING EVERYONE.
The month of June signals the start of quarter three based on the quarterly theory.Q3 is also referred to as the distribution phase or expansion.Given that information we expect to see expansion in majority of the market charts.
Our main focus is on DXY( Dollar index) which we pair against a basket of other currencies to get more insight on the foreign exchange market.We have witnessed a weak dollar in recent times. Weak is not an understatement as this is the poorest it has performed in recent years. The current prices were last seen during the covid era and has been used as baseline support for the pair in recent times.There have been a number of reasons for this and some carry more impact than others. Trade wars between the US and China have had the most impact and have been shaping up Trump's first year of his second term as president. Then lately we have witnessed the rising tensions in the middle east and feud between Islamic states and Israel.
We cannot foretell how lower we will go but we can keenly follow through the structures being broken and major price points being respected which will serve as indicators to the direction taken by the dxy.
With a calmer economic environment and support of strong economic data then we expect the dollar to rebound and propel higher. Not a full rebound but a play in the range between current lows and 102 which serves as the high for the previous two months.But if the current political turmoil persists and involvement of the US government in the middle eastern conflict then this will lead to an economic shakedown and an unpredictable dollar.
I hope this information will serve as a guide through this quarter. # SAFE TRADING EVERYONE.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.