It has been a contrarian trade that has not yet worked out; by that I mean my short position on the Euro and preparation for a firming US dollar. Yesterday the market cheered the supposedly dovish Fed, and USD got smeared again as the world’s counter party paper boosted assets far and wide… on nothing but perceptions and a hell of a lot of momentum and gaming on FOMC day.
USD opened weak again today but so far at least, is sporting a Hammer which, if it stays in play, would be a bullish reversal candle.
Regardless, whether that is a bullish Hammer or not, Uncle Buck is due for a contrary bounce and it is coming due soon. Reference this ‘Currencies’ excerpt from this week’s NFTRH 457 and in particular, the sentiment and CoT profiles. Here is the over-bearish public opinion (graph courtesy of Sentimentrader, mark ups mine)…
From a post-FOMC update to subscribers yesterday…
This post was published at GoldSeek on 28 July 2017.
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