Adam Button of ForexLive.com thinks the question that traders interested in buying the US dollar have to be asking themselves is…where? Adam suggests a few scenarios that should be considered, though he doesn’t think the USD bull market is over.
If you want to buy the US dollar—and I don’t think the USD bull market is over—the question is, where?
One school of thought is to buy the dollar where USD is weakest (JPY, NZD) and expect a complete retracement in everything. The other, I think correct, idea is that any currency that can barely make a gain against the US dollar on Tuesday (AUD, GBP) is very weak.
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Performance Tuesday versus USD
The other option would be to buy a basket of currencies versus USD.
By Adam Button, Editor, ForexLive.com
