USD has been going strong for few months. It has to do with what we called "Tapering". Just take a look at few of the currencies pairs.
EUR/USD - It came down from 1.399 to 1.283 Now, it is trying to approach FIBO 261.8%
USD/JPY - It broke FIBO 100% and now approaching 161.8%
USD/SGD - Last night it broke FIBO 161.8% Can it reach respecting FIBO 261.8% level? Before it can reach there, it need to overcome 2 other resistant which are at 1.2726 and 1.2792
Last night Fed confirmed further $10B reduction in its monthly purchase, leaving the stimulus program on course to be shuttered end of next month. After that, what next, will USD continue to show it power?
Currencies use to be sensitive to certain news, data and of course politics. I will be watching very closely on interest rate and yield. On the other hand, I will be watching closely on Europe. Today, it has a incredible low interest rate and planning for stimulus. How far can they go? Further reduce the interest rate, more stimulus program??? It also has a link with sanction war. How much it impact the Europe.
Base TA, as you can see from the charts, all 3 are half way through the major S/R level. Tap on those fundamental as I mentioned above, look for candle patter/price action signal when it is reaching the S/R level.
Let's look at another currencies pair - GBP/USD. Fate of UK (of course Scotland), GBP came down all the way from 1.719 to 1.605 in just two months. Currently, it is at retracement/pull back stage. Today, people in Scotland will vote on whether the country should stay in the UK or become an independent nation. So watch out on that if you are trading GBP. Important FIBO level between 50% to 61.8%
Last night Fed confirmed further $10B reduction in its monthly purchase, leaving the stimulus program on course to be shuttered end of next month. After that, what next, will USD continue to show it power?
Currencies use to be sensitive to certain news, data and of course politics. I will be watching very closely on interest rate and yield. On the other hand, I will be watching closely on Europe. Today, it has a incredible low interest rate and planning for stimulus. How far can they go? Further reduce the interest rate, more stimulus program??? It also has a link with sanction war. How much it impact the Europe.
Base TA, as you can see from the charts, all 3 are half way through the major S/R level. Tap on those fundamental as I mentioned above, look for candle patter/price action signal when it is reaching the S/R level.
