When will the USD start to trend
Obviously we’ve been having some huge cross moves over the last few weeks and in my experience these events will eventually lead to a big USD move.
The greenback has surged against the JPY but lost ground against the EUR, it’s made modest ground against the GBP and the CHF but is basically flat to slightly lower against the AUD and the NZD. Sentiment seems to be turning slightly positive for the USD, despite the fiscal cliff political shenanigans, and at the moment I am of the opinion that these big cross moves will end with a much higher USD. Not against the EUR perhaps, where we will probably see extended range trading somewhere in the 1.30’s but perhaps against the GBP (1.50 or below?), the CHF (1.00 or higher), the JPY (close to 100.00) and the AUD (back below 1.0000).
My trade of choice is the USD/CHF, where I’m looking to build a big long position for a possible 15 big figure rally. Well you gotta have a plan 🙂