Dollar bull market maybe?

mullac (44)in #money • 8 years ago

What is everyones current outlook on the USD?

I am predominantly a technical trader so I personally see the most probability in a move higher for the USD, below you can see the chart I am currently watching for the DXY.

The US Dollar Index (DXY) is a measure of the value of the United States Dollar relative to a basket of foreign currencies. It is a weighted measure using the dollar’s movements relative to other select currencies, the current mix is approximately:

57.6% Euro (EUR)
13.6% Japanese Yen (JPY)
9.1% Canadian Dollar (CAD)
4.2% Swedish Krona (SEK)
3.6% Swiss Franc (CHF)

As you can see the dollar has broken to the upside and we believe we could see a bullish run from here. If you open your charts and look at the EUR/USD, you will see it is very nicely correlated with the DXY and presents a similar setup. With the EU under huge pressure now due to the UK exiting, we think that there is a lot of room for a move down and the dollar currently has the potential to act as a safe haven currency, fuelling the moving up.