The ForexSignal trading desk has held a bullish view all year of the Greenbacks move towards parity. The last few weeks has seen a definite weakening of the USD against the majors and the commodity pairs. In particular, the recent strong move in the Eur/Usd seemed to turn the bullish USD sentiment South as it appeared the Euro zones woes and the Greek debacle were no longer center stage and finally the Euro zone and emerging markets were possibly picking up steam again. The EUR/USD pair in particular looked like it finally was heading North towards the 1.1200 level.
Just as it was looking like the Greenback was staring to lose it’s shine and traces of tarnish was starting to appear on the USD, the ECB announcement on Thursday came down like a magic eraser and cleared the tarnish off the USD. It’s was simple and clear – Euro zone interest rates are here to stay certainly until after the New Year. They need all the help and cleanup it can get. It is this writers opinion the equivalent of QE is next on the cards if that engine continues to misfire.
Even though the US economy is not running on all 8 cylinders, it is running and outperforming most markets. And wait, let’ s not forget China, that story is far from over.
I do believe we will see a re test of this years 1.0400 low once again. Parity should follow in the not too distant future after that.
Bottom line – It’s my belief that the next leg of the Greenback surge is just unfolding. Now that the market has some clearer direction we see some great opportunities for Forex Signals are starting to emerge. Until there is some very strong definite news or a total sentiment change it looks like the smart money will be directed towards the USD. Pullbacks on the USD to pivotal reversal levels should be the big play focus in helping to catch those big moves. We look optimistically to some great trading opportunities for our subscribers between now and early 2016.
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