For the whole of July, US dollar have been pretty much consolidating after hitting the 1.618 fib resistance level from the lows of 2008.
A break above 98.7 over the next few days would be really bullish for Dollar, and signals a continued uptrend to 104 and 120.
What would the catalyst be? Expectations of a rate hike? More EU woes? China collapsing bubble?
For this trade, I will just short oil via long on DWTI ETF (3x inverse crude) in expectation of a stronger dollar. Since oil have been strongly correlated to Dollar since July 2014 as seen from the chart on the left.
A break above 98.7 over the next few days would be really bullish for Dollar, and signals a continued uptrend to 104 and 120.
What would the catalyst be? Expectations of a rate hike? More EU woes? China collapsing bubble?
For this trade, I will just short oil via long on DWTI ETF (3x inverse crude) in expectation of a stronger dollar. Since oil have been strongly correlated to Dollar since July 2014 as seen from the chart on the left.