DXY : Clean Bullish Market structure and potential RISK OFF

1 במרץ 2022

Hello fam , before continuing make sure to like and follow . Please make sure to read this post . We will talk about THE MARKET SENTIMENT

When a market has a risk off sentiment : Stocks are to the downside , Oil and
Cooper to the downside , Gold to the upside because is a safe haven value,
Commodities currencies like aud nzd and cad are to the downside , Safe haven
currencies like CHF and JPY and even USD are to the upside... Volatility index to
the upside.

Normally that happens when whe have crisis for example with the coronavirus
during the lockdown period market was with a risk of sentiment.

When a market has a risk On sentiment : Stocks are to the upside ( optimistic
perspective) , Oil and Cooper to the upside , Gold to the downside because
investor don’t need to protect themselves, Commodities currencies like aud nzd
and cad are to the upside , Safe haven currencies like CHF and JPY and even
USD are to the downside... Volatility index to the downside.
Normally that happens when we have a optimistic perspective about the
financial markets.

The News is a key point in forex, it is very important to know that trading during
the news market carries a higher risk, it will always be advisable to avoid days
charged of news because volatility tends to increase and you never know how
the market will react. However, despite increased volatility, with good risk
management, we can interpret the news and use them.
It is therefore essential that before opening an operation, you check.

In this case:
If tension increase and conflit gets stronger
we can expect a strong RISK OFF sentiment
if that happen :

-DXY INCREASE ,
-JPY INCREASE
-GOLD INCREASE
= bullish on USD/... AND bearish on .../JPY

THE REST DECREASE( EUR ,NZD, AUD ETC..)
=bearish on .../USD