DXY - Scenario 1 - Further Decline If Stimulus Is Agreed
Good morning traders,
All eyes are on the US stimulus negotiations taking place as we speak.
We all know a stimulus package is on its way, it is just a matter of when and how large.
If the Democrats and Republicans reach an agreement prior to the elections the USD is primed to fall lower. This is a big IF.
There is a large gap between the two proposals, and agreeing on a package prior to the elections might not be the best move for the Democrats.
It would make sense for them to hold off until Joe Biden becomes president, providing him with ammunition to re-inflate the US stock markets.
News coming from the US suggests Nanci Pelosi is possibly looking at a rug pull, putting a brake on the negotiations. This is yet to be confirmed.
If she does a rug pull the USD will most likely break to the upside of the negative trendline.
However, on the chance a deal is reached or if the market anticipates a deal being reached in the near future, this scenario will possibly play out heading into the elections.
This possible wave count is yet to complete wave 3 on the larger degree. A break below the 3rd minor wave would provide the green light for a sell opportunity.
If you have any thoughts or questions please let us know.
All eyes are on the US stimulus negotiations taking place as we speak.
We all know a stimulus package is on its way, it is just a matter of when and how large.
If the Democrats and Republicans reach an agreement prior to the elections the USD is primed to fall lower. This is a big IF.
There is a large gap between the two proposals, and agreeing on a package prior to the elections might not be the best move for the Democrats.
It would make sense for them to hold off until Joe Biden becomes president, providing him with ammunition to re-inflate the US stock markets.
News coming from the US suggests Nanci Pelosi is possibly looking at a rug pull, putting a brake on the negotiations. This is yet to be confirmed.
If she does a rug pull the USD will most likely break to the upside of the negative trendline.
However, on the chance a deal is reached or if the market anticipates a deal being reached in the near future, this scenario will possibly play out heading into the elections.
This possible wave count is yet to complete wave 3 on the larger degree. A break below the 3rd minor wave would provide the green light for a sell opportunity.
If you have any thoughts or questions please let us know.