DislikedHi, traderathome, I appreciate your comments on EURUSD, but could you please clarify point 5 ?
What do you mean by "pro-USD currencies", pretending to rise in short term ? Which currencies ?
IMHO, Euro is mecanically rising because USD is falling and falling due to dictatorial QE decided by the FED, mainly in order to artificially shrink the US debt. Desorganized european countries are victms of the FED policy, and no country is able to fight against such injust robbery.
I see USDJPY rising, but USDCAD is falling, showing what the FED is struggling...Ignored
5. And logic says such activity would not be restricted to EU alone, but would occur with all USD pairs as the "privileged" close out their anti-USD positions. And that would just be the start. Once that is done, the next stage would naturally be for the "privileged" to start loading up on pro-USD positions. And, at some point during all of this, prices are going to start reflecting what really has been, and is, going on in the market.
The reference is to anti-USD and pro-USD positions. For example, if you long EU then your position is anti-USD. If you long UCad then your position is pro-USD. And you observe that UCad is falling. Yes, but why? Why, indeed?! Each time it has been knocked lower in past weeks, the trading has dramatically increased at the new lows. So, it was not falling because the market was bullish CAD. It has been getting knocked down repeatedly because the market has been wanting to close shorts most profitably and start building long at the lowest prices it could knock it down to! Why the exodus from shorts into longs? The market (my speculation, now....) is covertly pro-USD, and not just on UCad. But on UCad this price manipulation (knock it down and then buy heavily; buy to close shorts then buy more to open new longs) has been very clear off and on now for weeks. And the "market" (big money manipulators) needed to start UCad on a drive down when it set out to do all of this because the market needed to make it look like it was extremely bearish, in order to attract others in to short. Those new shorters are what make it possible for the "market" to close it's shorts and to start building it's new long position.