The $104 level in the US dollar index, has proven to be resistance and the moves in the markets over the last few days have been a mixed bag of fortune. Fundamentally the world is being driven by the war in Ukraine and the lockdowns in China. Supply chains and energy will be the key drivers of inflation and everyone is talking about how to reduce inflation. The Fed is actively trying to kill demand off. The ECB will no doubt succumb to the global rate hike cycle. Moves in the euro today could bring the US dollar index down further. Still, there are some apparent levels of liquidity following previous central bank rate decisions that I believe are the market’s targets. We may overshoot them. The moves will be designed to trap as many people on the wrong side of the trade and I am therefore not going to marry a trade until I have a better understanding of whether we are in a trend reversal or just a correction.
For more trading details, please check the hyperlinks with time stamp indicated from the video: