The dollar bulls has been keeping up a good fight but still far away from a confirmed reversal. It’s too early to long the dollar now but things are definitely at an interesting level. But the big news today was from the UK election which hit the pound pretty hard at the end of NY session. There are several outcomes that can come through from the election which will result in a lot of uncertainty for the future. Longing the pound here is would be a risky move.
I had some profits on scalping the GBP/USD before the whole fiasco but further selling does catch my eye. I’ll be looking at different pound pairs and see if they offer any shorting opportunities. As for the dollar, I’m still unsure about the bounce.
Today was an usually chaotic day with prices snapping like rubber bands. The dollar went on a huge spike up then a spike down from late London crossing over to New York session. The dollar bears are still healthy while the bulls are attempting to keep pressure. The balances between the bulls and the bears. are definitely intense
I was hoping the dollar sell-off would continue but it was a rather quiet day. Threw in some EUR/USD and GBP/USD long trades and fooled around with USD/JPY shorts. All in all, was a boring and quiet day. Will wait for another snap in the market.
I had a couple bad GBP/JPY trades in London session before the NFP released. Price action was a bit wonky and things stalled before NFP. A couple minutes before the data announcement I had a holding long GBP/USD trade, which would’ve been a juicy trade, but closed out to avoid slippage. The data ultimately came out to 138k new jobs vs 181k estimate and wrecked the dollar. With this huge selling momentum, the best thing to do is ride the wave and not to call bottoms.
The market has been volatile in the anticipation of the employment data tomorrow. Things have been very tricky to trade while I was at fault trying to force trades. Dollar seems to be in limbo with it reacting it differently among the variety pairs. Tomorrow will be interesting for the dollar.
It’s a short trading week due to the long Memorial day weekend, but it’ll be a volatile week with an employment data for May on Friday. The dollar looks like it’s holding it’s weight and attempting to hold it’s strength. There’s a high probability for an upcoming rate hike so it’ll be interesting to see how the dollar reacts in the anticipation.
The pullback finally happened after an extensive push by the dollar bears. This can be a momentary breather from the bears before the next leg down or it can be a start to the reversal fade. Will be keeping an eye out for possible big moves.
The dollar bears finished the week strong by pushing other pairs below. My mistake today was trying to force a USD/CHF long before it was ready to jump. This week would’ve been a great week to ride the trend, but I feel like traders naturally look for a better R:R and may be fooled into taking a counter-trend trade. Always be patient with trends and never force trades.
The dollar is still down but I couldn’t find a good place to short because it’s still taking trend from yesterday’s move. I was waiting for a pullback to enter in a USD/JPY short but didn’t get any good opportunities. I tested out some EUR/USD short and USD/CHF longs to test a dollar bottom but still looks like it’s wishful thinking. The stock market crumbled today with the vix flying, tensions are high in the markets.
The biggest mover this week is the EUR/USD rally that has been showing no weakness since the last couple days. It’s been consistently making new highs while other dollar pairs has been stuck in limbo. Luckily, volume has been looking better today as USD/JPY finally snapped down with other dollar pairs to follow. Finding a bottom on dollar seems very risky now so looking to scalp the shorts.