Trade Tips from Washington DC
We all knew the Trump Administration wants a weak US dollar. But when the following remarks (see image below) are all made in a matter of 2 days just ahead of NFP (NFP is Today not Friday), then they sound like free trading tips from Washington to sell the US dollar. Such US dollar approach is known as "Benign Neglect", implicitely talking down the value of the US dollar, seen in the 1970s, mid 1980s & early 2000s. Does this mean NFP today will be 15K, or even 0 and not the 68K expected by consensus? Have you noticed the recent practice to show stable unemployment rate but weak payrolls? Anyway, I already shared my "sell USDJPY" and "Long XAGUSD" trades with the WhatsApp Bdcst Group on Monday and Tuesday. The USDJPY trendline from the April low thru the July & Sep lows suggests 151 is a realistic destination. Dont forget CPI on Friday. How about you? What did you do?
Finally Im revealing the Mystery Chart discussed here and here. The top chart is EURGBP Daily and the bottom chart is EURGBP Weekly. I'm sure you are experienced enough to notice the top chart has finally broken above its 3-month long channel, while the weekly chart has not only held the 11-month trendline support, but is bouncing higher. Can this go to 0.89? There are other important fundamental metrics backing the trade. If you speak Arabic, join me my webinar with Swissquote this evening 6pm GMT. . If you prefer to get these daily analysis into your mailbox and not miss an update, then feel free to register (for free) in the upper corner of the website.
Read More...On Friday I sent 2 Mystery Charts, asking you to guess what they are. The charts are in this post here. Have you figured them out yet? The price is now up 45 pips since Friday. I gave the trade to the WhatsApp Bdcst Group last week. Do not be angry. Do not worry if you have missed the move. There is more upside to come. I shall reveal the chart later today. Come on. You can do it ! Here are the charts again.
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