I’m looking for value underneath to take advantage of as the markets will almost certainly turn around after this move.
The 50-Day EMA is near the 0.97 level, and is rising. That’s an indicator that a lot of people pay close attention to, so I will be curious to see if it does in fact show signs of support. If it does, then I would be willing to buy some type of bounds. A break above the parity level, would be a very bullish sign could send this market much higher. I would think that a move in this direction would see US dollar strength across the board, and it must be noted that in comparison to other pairs during the day, the Swiss franc was not as brutally strong against the US dollar as other currencies such as the Euro and the British pound. Either way, both of those are extremely overdone at the moment, so we could in fact see the US dollar strengthened across the board.
The Reserve Bank of Australia has raised interest rates by only 25 basis points overnight, and that seems to have everybody thinking that the Federal Reserve is going to pause. This is the same kind of game that we have been playing for months now, as an entire generation of traders have no idea what to do unless there is a lot of free money out there. They’ve never had to trade an actual economic environment, but they are learning as they go along. This has been a very difficult moment for a lot of those traders, and I don’t think things get any easier anytime soon. With that, I’m looking for value underneath to take advantage of as the markets will almost certainly turn around after this move.