The U.S. dollar suddenly voluntarily falls, is there a hidden risk in the market outlook?

August. 31,2021
The U.S. dollar suddenly voluntarily falls, is there a hidden risk in the market outlook?

Continue to analyze the dollar index. We can see that the US dollar index showed a turbulent pattern yesterday, the market volatility was not large, and the trend in the hourly chart was relatively flat. There was no phenomenon of multiple back and forth sweeps, only a wave of "down-up-down" "In the market, the final price closed near the opening price, and the daily line closed in a doji pattern, conveying a kind of pause message, which shows that the US dollar index did not give any direction yesterday, and it is really resting.

However, judging from today’s market situation, the U.S. dollar index suddenly showed a relatively positive downward trend. The price began to tentatively decline during the Asian session. With the opening of the European market, the rate of decline of the U.S. dollar index has accelerated, and the magnitude of the decline has also increased. The increase, this trend is a downward pattern, the price continues to fall, and it continues to erode the bulls' camp. Of course, it is also confirming the previous wave judgment.

However, the U.S. dollar index has never been so simple. A trend that is too positive will give people a sense of insecurity. Because the market itself is very stale and complex, it cannot support a clean and clear market, but now the trend is so clear. , There is really no potential risk factor among them? I believe this doubt will also exist in everyone's mind, and over time, it will even escalate into a doubt.

This possibility cannot be ruled out, so we can only look at the current market operation cautiously. The short-term trend is undoubtedly bearish on the US dollar index, but the judgment of the larger cycle can only be handled cautiously, and no clear judgment can be made.

In the face of such a situation, it is estimated that someone will say that you are deliberately creating a tense atmosphere, but in the face of the current market, who has the ability to be 100% accurate, even if it is right for a few days in a row, then continuously For a few weeks, for a few consecutive months, can you be 100% accurate? I believe everyone has the answer in their minds. Therefore, if you want to achieve sustained profitability in the current complex situation, you can only respond with caution; of course, if it is It is also satiable to like the stimulus of huge profits and losses. The current market fully meets this requirement, and it will certainly meet the stimulation needs of huge profits and losses, but it is also a kind of distorted demand for abuse.

In any case, the US dollar index is still in a downward pattern, so we can also be bearish thinking. After all, the price has opened up the downward space, and further declines in the future are also possible. What needs to be watched is that the US dollar index suddenly converges, and the price Sudden violent pull, thus knocking out the short position, is very annoying.

At the operational level, you can still find opportunities to short the U.S. dollar index on rallies, and try to choose some effective pressure levels for layout. As for non-US currencies and gold, find opportunities to buy on dips. Remember to respond with caution and not rush, so as not to Cause deadweight loss!

 

Trading straregy:

EUR/USD:

Although the current trend in Europe and the United States is more positive and the operation should be more focused, considering the risk factors existing in the market, we can only give cautious and low-many suggestions.

1. 1800-1.1810 interval buy, stop loss 20 points, target 1.1830, 1.1850, 1.1870.

AUD/USD:

Today's second operation currency pair, choose Australia and the United States to trade. In combination with the discreet, low-to-many advice given by the market, the market will do it when given the opportunity, and wait and see if it is not given. Weak position:

Buy in the 0.7295-0.7305 range, stop loss 20 points, and target 0.7325, 0.7345, and 0.7365.

gold:

Regarding the trend of gold, give bullish judgments, but beware of market pullbacks. After all, the current market sentiment is somewhat unstable, so beware of sudden changes in the face of the market.

Today, you can continue to hold yesterday's long position, and continue to look up until the third goal:

Hold yesterday's 1,808 long single positions, of which the second target 1816 has arrived, and the corresponding protection is done, and you can continue to look to the third target 1821.