Daily thread to exchange ideas and to share your thoughts
It doesn't look like there is much to stop the dollar's rampaging form at the moment as the gains continue to pile for the greenback.
EUR/USD is working its way towards 1.1200 while USD/JPY is threatening a run above 115.00. The latter in particular is interesting to watch as it outlines the technical potential for the greenback and perhaps yen pairs (if the mood is right) in the weeks ahead.
For now though, it is just tough, as it has been in the past two weeks, to go against the dollar and commodity currencies are also finding that out the hard way.
Looking elsewhere, gold's tumble after Powell's renomination is a big setback to the recent technical breakout but it wasn't one that is too unexpected.
I've argued that the latest run is coming a bit too early for my liking since the seasonal tailwind only kicks in during the run from December to January and so the latest dip here is most welcome in searching for a good opportunity to base a trade on that.
The key daily moving averages around $1,792-93 is an area to watch but there is the potential for gold to retrace back towards $1,750 before any buying appetite returns.
Besides that, oil is one I continue to keep a watchful eye on and all this talk about a coordinated SPR release is just calling for a 'buy the dips' or 'buy the fact' play in my view - even if there might be a kneejerk reaction lower initially.
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