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US-DOLLAR

NZDUSD: Short Trade Explained NZDUSD is approaching a local structure high that was previously reached 12th of November. the price has violated the support line of a rising wedge pattern once it reached the underline structure and currently it is trading within a narrow horizontal decision range. 0.6896 - 0.6915 are the boundaries of that range. an hourly candle close below that will be a strong bearish signal and will most likely trigger a selling reaction. wait for a confirmed violation and sell aggressively or on a retest. goals: 0.68715 0.685 0.682 in case of an hourly candle close above the range, the setup will be invalid.
Short
by VasilyTrader
13
USDJPY May Drop! Here is Why: USDJPY is still trading below a major falling trend line that we can identify on 3 days/daily charts. While the price is below that we remain bearish biased. On a daily after a strong bullish wave from 103.2 level the price has perfectly stopped on that trend line. In the next two days we saw a clear indecision with a sequence of two weak candles. Yesterday's daily candle closed engulfing the range of the previous two candles. It is a very strong bearish signal and based on that I expect a bearish continuation. Next goal - 104.2
Short
by VasilyTrader
16
US DOLLAR CURRENCY INDEXWill the US Dollar Collapse? How, When, and What to Do If That Did Occur A dollar collapse is when the value of the U.S. dollar plummets. In that scenario, anyone who holds dollar-denominated assets will sell them at any cost. That includes foreign governments that own U.S. Treasurys. It also affects foreign exchange futures traders. Last but not least, it will hit individual investors. When the crash occurs, these parties will demand assets denominated in anything other than dollars. The collapse of the dollar means that everyone is trying to sell their dollar-denominated assets, and no one wants to buy them . This will drive the value of the dollar down to near zero. It would make hyperinflation look like a day in the park. Two Conditions That Could Lead to a Collapse Two conditions must be in place before the dollar could collapse. There must be an underlying weakness in the value of the U.S. dollar, and there must be a viable alternative. In other words, there must be a reason people are fleeing the dollar and there must be somewhere for them to go . Otherwise, the dollar will remain the world's global currency. The majority of international contracts demand a dollar payment, so that also adds to its stability. Underlying Weakness The dollar is not exhibiting an underlying weakness. Between January 2008 and 2020, the dollar has strengthened by 30%, from 89.2 to 115. The coronavirus pandemic strengthened it a further 10%, rising as high as 126.4 on March 23, 2020. Why? The U.S. economy is still seen as the strongest in the world. Investors trust the U.S. government will back its currency . The dollar's strength is based on its use as the world's reserve currency. The dollar became the reserve currency in 1971 when President Richard Nixon abandoned the gold standard. As a global currency, the dollar is used for half of all cross-border transactions. That requires central banks to hold the dollar in their reserves to pay for these transactions . As a result, 61% of these foreign currency reserves are in dollars. Viable Currency Alternative There is no viable currency alternative for everyone to buy. The next most popular currency after the dollar is the euro. But it comprises only 21% of central bank reserves. China and others argue that a new currency should be created and used as a global currency. China would like it to be its currency, the yuan. That would boost China's economic growth. China has not taken enough steps to make its currency widely traded. It's only 2% of central bank foreign currency reserves. Bitcoin's value is highly volatile because there's no central bank to manage it . It's also become the coin of choice for the black economy . Economic Event that Could Trigger a Collapse A collapse couldn't occur without a triggering event that destroys confidence in the dollar . Altogether, foreign countries own more than $6 trillion in U.S. debt. The two largest are China and Japan. If they dump their holdings of Treasury notes, they could cause a panic leading to collapse. China owns nearly $1 trillion in U.S. Treasurys. Japan, in turn, owns more than $1.2 trillion in Treasurys. It also wants to keep the yen low to stimulate exports to the United States. Japan is moving out of a 15-year deflationary cycle. The 2011 earthquake and nuclear disaster didn't help. The economies of Japan and China are dependent on U.S. consumers. They know that if they sell their dollars, their action would further depress the value of the dollar. So their products, still priced in yuan and yen, would cost relatively more in the United States . Their economies would suffer. Right now, it's still in their best interest to hold on to their dollar reserves. China and Japan are aware of their vulnerability. They are selling more to other Asian countries that are gradually becoming wealthier. But the United States is still the best market in the world . These articles are coming from various sources.
TVC:DXYLong
by RyodaBrainless
USDJPY: Important Breakout & Bearish Continuation USDJPY finally broke and closed below 104.0 major structure support on 3d/d timeframes. now this structure turned to resistance. In my view this breakout defines midterm/long-term sentiment on the pair and sellers will push lower. we can not define the exact time horizon for now, but the next goals for sellers are: 103.1 101.2 (it is not a trading recommendation, I will be looking for a retest of the broken level first to join this short rally)
Short
by VasilyTrader
12
EURUSD: Daily Time Frame Analysis & Key Levels hey traders, due to uncertainty with elections, it is quite hard to find a decent trading opportunity. the instruments are quite volatile and chaotic at the moment so I am waiting until it settles. On eurusd after a bounce from the current structure low, the price is currently attempting to break above a major falling trend line that served as the resistance. depending on the reaction of the market on that, here are the key daily levels to consider: Support 1 - 1.16 - 1.162 current daily structure low Resistance 1 - 1.185 - 1.187 last daily lower high Resistance 2 - 1.195 - 1.20 remember that if daily candle closes above the trend line, if it serve us support. key levels are used as goals for our trades and as points from where we open them!
by VasilyTrader
13
USDCAD Retesting the downtrend +70 PipsWelcome Back. Please support this idea with LIKE if you find it useful. *** It may head to the downside after breaking the downtrend, and then return to the upside with the same scenario that you set. *** Here is the full analysis for this pair, let me know in the comment section below if you have any questions, the entry will be taken only if all rules of the strategies will be satisfied. I suggest you keep this pair on your watchlist and see if the rules of your strategy are satisfied. Remember this analysis is not 100% accurate No single analysis is To make a decision follow your own thoughts. *** The information given is not a Financial Advice.
Short
by Saeed966
4
EURUSD: Indecision & Paralysis hey guys, still not clear where EURUSD will go next. the price is still stuck within two major trend lines and for now, it consolidates within an expanding decision range. the problem is that we can never know how long the price will trade within. the timespan is unknown. to catch the next swing move I would wait for a violation of that range either to the upside or to the downside. for intraday traders, both lines serve as very good points to sell/buy from. let's wait for the decision and then just act accordingly!)
by VasilyTrader
15
EURUSD: Important Decision Ahead hey traders, EURUSD is currently trading within a very peculiar zone: its upper boundary is based on the major rising trend line that the price broke in September and that currently serves as the resistance. its lower boundary is based on the major falling trend line that the price has violated yesterday and that currently serves as the support. for now, I see two equally possible scenarios: either we close above the upper boundary of the zone and continue growing to 1.1935 level or we drop below its lower boundary and initiate a short rally at least to 1.1705 for now it is hard to say exactly, which side the pair will select. so I prefer to wait.
by VasilyTrader
21
BRICS currencies movement for the week – 16 October 2020A strong week for the US Dollar, with most Emerging Market currencies coming under pressure. Also look at my US Dollar Index Idea here: Despite the USD strength, the ZAR remained resilient, having some of the best relative BRICS currency performance for the week. BRICS currency/USD movements for this week: Brazil -1.9% Russia -1.1% India -0.6% China 0.0% South Africa -0.5% Euro /USD -1.7% Technically, the ZAR broke and close the week off below all four the 8-, 21-, 50- and 200-day Exponential Moving Averages (EMA), which over the shorter-term, might provide some further momentum in the ZAR. If this was a false break and we see the ZAR break and stay above the 200-day EMA (at R16.61) this week, we could see it move back to the 50-day EMA at R16.76. A break and close above this level could see the USDZAR test the diagonal resistance level at R16.85, with a break and close above this level, most probably bringing R17.10 back into play. With the runup to the US Elections, this (USD Strength) in my view can only happen if the momentum swings back from Biden to Trump, which at this stage seems highly unlikely. The 14-day RSI is not in oversold territory yet, which will have me optimistic should the USDZAR break and close below R16.50 early this coming week. Momentum is turning and very much moving back into the favour of the Rand, which tend to make me believe that we might just be testing the R16.10 levels again over the shorter-term. Watch the US Dollar Index early this week. Should you be contemplating any short-term long positions in the ZAR (short USDZAR), I would only look at doing so below 93.20 on the Index.
by SchalkLouw
3