The past few days were a tough one. Oil, China, and the US dollar has been going crazy recently due to market psychology and confusion. Movements are more unpredictable and price volatility is more fickle. The dollar recently broke highs which makes it a bit more unstable. I feel like the fear of markets from China and the down pressure from oil is artificially bringing the dollar much higher. Today’s session was unique because while the dollar saw strength in NY session, it quickly turned around in the late afternoon. Not sure if this is market manipulation or artificial movement but it’s one crazy market right now.
Trading as been difficult for the last couple of days. The current situation in the markets has pushed pairs of currencies, commodities, and equities into extreme price zones. Fellow traders, be very careful until the market calms down a bit more. I’m currently sitting on a long GBP/USD trade as the dollar got rejected hard after breaking new highs.
Look at dollar’s resident strength which soon turned around in the afternoon…