With the DXY still above 93.00 and yields pushing multi year highs, and Core PCE which is the FED's inflation measurement now at 1.90% there is a strong case to be bullish the USD. Having seen a cool down in regional risk sentiment and the unexpected miss on Japanese GDP i can only see the pair going one way. There is a positive rate differential and central bank policy divergence at play here aswell.
I managed to get long this pair yesterday from 110.15 to close leg one of the trade at 110.60 I am now looking for a pullback to the 38.2% fib of that move to get back in long to 111.00
The main risk is a turn around in US yields or any kind of risk off sentiment entering the market.
I managed to get long this pair yesterday from 110.15 to close leg one of the trade at 110.60 I am now looking for a pullback to the 38.2% fib of that move to get back in long to 111.00
The main risk is a turn around in US yields or any kind of risk off sentiment entering the market.