| Followers | 192 |
| Posts | 41494 |
| Boards Moderated | 1 |
| Alias Born | 10/29/2007 |
Tuesday, June 18, 2013 4:58:53 PM
How Will the Market React to FOMC?
Ahhh...the question everyone is asking, pro or novice trader alike.
Everyone has their opinion of course. And most of the rhetoric I see coming from the professionals revolves around bantering back and forth about what Ben will or won't do....guessing, in other words.
I don't like guessing, even though I'm subject to doing it sometimes...LOL!
For answers to a perplexing question, I like plain old simple charts...what does the price action say is likely to happen?
At the core of most of the arguments is this...what will the good ole US dollar index do as a result of Ben's gum flapping? Up or down or sideways?
Long ago I learned that sometimes you have to get a different perspective on things. One neat trick is to take a chart and flip it upside down...you'd be surprised how much insight you can gain simply by looking at things from a different angle.
With that in mind, I started watching the USD/DKK pair quite a while back thanks to Ticket To Ride. Basically, this pair reflects what the dollar index is doing. It matches the movement of the dollar index very closely. So I look for clues there. Also, more importantly, it gives me an "upside down" view of EU, which runs as an inverse to USD/DKK.
As you can see, the index has been crushed lately as pairs like EU and GU have enjoyed a nice pop. But the current chart indicates that a trend change is at hand soon, especially for EU.
The chart is self explanatory so I'll leave it at that. My money is betting on a strong reversal set up. Dollar index is gonna kick butt again for a while and, as I stated earlier today, EU is gonna become the red headed step child, aka the whipping boy.
Place your bets!
Ahhh...the question everyone is asking, pro or novice trader alike.
Everyone has their opinion of course. And most of the rhetoric I see coming from the professionals revolves around bantering back and forth about what Ben will or won't do....guessing, in other words.
I don't like guessing, even though I'm subject to doing it sometimes...LOL!
For answers to a perplexing question, I like plain old simple charts...what does the price action say is likely to happen?
At the core of most of the arguments is this...what will the good ole US dollar index do as a result of Ben's gum flapping? Up or down or sideways?
Long ago I learned that sometimes you have to get a different perspective on things. One neat trick is to take a chart and flip it upside down...you'd be surprised how much insight you can gain simply by looking at things from a different angle.
With that in mind, I started watching the USD/DKK pair quite a while back thanks to Ticket To Ride. Basically, this pair reflects what the dollar index is doing. It matches the movement of the dollar index very closely. So I look for clues there. Also, more importantly, it gives me an "upside down" view of EU, which runs as an inverse to USD/DKK.
As you can see, the index has been crushed lately as pairs like EU and GU have enjoyed a nice pop. But the current chart indicates that a trend change is at hand soon, especially for EU.
The chart is self explanatory so I'll leave it at that. My money is betting on a strong reversal set up. Dollar index is gonna kick butt again for a while and, as I stated earlier today, EU is gonna become the red headed step child, aka the whipping boy.
Place your bets!
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
