This text is from blog famous currency strategist Joel Kruger .
RETURN OF THE DOLLAR? – The US Dollar has been attempting to mount a recovery over the past few sessions, and technically, it looks as though the buck could start to gain momentum. On the fundamental front, there has been a drive to safe haven assets, with news of Plan B setbacks in the US House fueling the price action. This has been of benefit to the Greenback, and should things continue in this unproductive manner, we could really see an acceleration of US Dollar gains.
Daily forex technical anlysis video made by Joel:
RISK CORRELATED ASSETS EXPOSED – Elsewhere, a very disappointing UK GfK consumer confidence and S&P downgrade of Cyprus have also been sourced as additional drivers of risk off trade. The confluence of techno-fundamental risk negative themes in markets right now, should therefore continue to weigh on risk correlated assets, including what I believe to be some grossly overinflated global equity prices.
THE POWER OF ANALOGUE – Nevertheless, a serious word of caution is required, particularly in the US Dollar’s case. If we look back at the US Dollar’s performance in the final week of the year, going back over a decade, the results are undeniably consistent, with the buck generally getting sold into the final days of any given year over this period. As such, I recommend being very careful over the coming days, if you are considering taking positions. While the US Dollar does look like it can extend gains, we also need to be reminded of this powerful analogue analysis.
NOT LOOKING FOR NEW TRADES – For me, the books are pretty much closed up for the year and I am going to try and be thankful for the successes over the past 6 months since setting off of this new path of full time trading. I feel very blessed for being able to go out and work for myself, and have for so many years been looking forward to doing exactly what it is that I am doing right now.
THANK YOU BABE! – This blog has been an amazing vehicle to keep me honest, affording me the opportunity to really formulate and filter through each and every trade. I have had a blast writing each and every day, and want to take the time to thank all of you for coming along on the journey. The correspondences with all of you have been delightful and I am very grateful for these relationships. How cool is it that I get to have friends from literally every continent? 🙂 I hope you are all doing well, and I wish all of you a very happy holidays and wonderful new year! A special thanks to my beautiful wife who has always been there for me. You are the very best!! Thanks babe!
THE WISDOM OF BOB DYLAN – One more thing….Please remember that success is nothing without failure. If you are passionate about markets and love trading…keep at it…I promise…you will get there. Embrace the failures and realize them for what they are……necessary learning experiences that make everything worthwhile when you finally start to hit your stride. Bob Dylan said it best….”there’s no success like failure and failure’s no success at all.”