Is the dollar raising its head temporarily, or it’s a trend changing
The question is whether there is a replay here: Similar moves in a number of sectors that occurred in 2014 + _ Such as gold and coins
And again in the USCongress will have to approve raising the debt ceiling by September 30, to avoid shutting down the administration. Such a situation occurred in 2013 when Republicans refused to raise the debt ceiling during the Barack Obama administration, and in 2018-2019 Trump, then shut down the administration for 35 days, the longest shutdown in U.S. history.
We will add to this:
China shuts down factories and imposes sanctions and Evergrande problem
China’s widening electricity crisis caused by coal shortage
The global chip shortage has become unmanageable as Asian factory shutdowns compound their scarcity
Oil crisis – OPEC warns natural gas crisis may create oil market turbulence, and here we have a recipe for the chopped salad, just missing thousand island sauce
The dollar raises its head – this time I chose to examine pounds against the dollar GBP/USD
One can see similarities between the moves, If this is the case, then we have the following options:
Breaking zone 1.35 will lead the pair to zone 1.3380 and then to 1.3130
Sustained trading below 1.3130 will argue that it’s indeed a bearish trend reversal
On the other hand, support will send the duo for further examination of area 1.3820 + _
It should be noted that as long as the pair trades below the 1.35 range, the negative trend intensifies.
The position map also shows similarity
This review does not include any document and/or file attached to it as advice or recommendation to buy/sell securities and/or other advice