Recent events in the market have had some traders confused, with the Fed tightening surely this means the dollar goes up, it doesn’t appear to be. To try and make some sense of this its important to look at the bigger picture, the US data has not improved and some have argued its even getting worse, there will be some that are thinking that we are just one bad Non farm payrolls away from tapering ending and as a result the dollar falls. I am in the dollar bull side of the market and look to take advantage of this falls to buy the dollar.
Last Fridays low at 79.91 and then below at 79.65 offer the first entry, should we break lower I will be targeting 79 which was the October 2013 lows. I will be buying this dips.
DXY daily chart
