For months I have followed the dollar index and USDCAD. Though I did not directly trade dollar index it was a signal for both USDCAD and all other markets.
Some of my views to consider
I used USDCAD as a market hedge with call options. If the price of USD went up I expected the above debt issues. This turned out to be an effective hedge.
This is for educational and discussion purposes only. If you want a financial advisor I'm not one so please go find one.
Some of my views to consider
- Most global debt is in USD
- Interest rate increases can be seen as sell pressure to where most debt is concentrated
- Forced selling It does not matter how much you love your assets when margin calls come knocking
- Oscillators show weakness in momentum for a while now
- Candle stick weekly shows a rejection from 4.618 Fib last week. With engulfing red candle this week.
- Weekly reversal is unlikely be able to stop at 3.618 FIb support due to downward momentum.
- Though technically 100 is phycological support I see no previous price action to support that acting as support.
- 1.618 Fib won't likely be broken as price action and the break out there are really clear.
- Reduction in margin calls without rising dollar would allow the market to correct. (More rational market)
I used USDCAD as a market hedge with call options. If the price of USD went up I expected the above debt issues. This turned out to be an effective hedge.
This is for educational and discussion purposes only. If you want a financial advisor I'm not one so please go find one.