just wanted to clarify, during a carrying trade is the currency of the carry trade sold and another pair bought. For example during the yen carry trade of the early decade, was the yen sold and say another currency with higher interest rates bought eg the aussie dollar. So if the dollar is in a carry trade wouldnt the dollar be sold and show further weakness, as long as rates stay low.
Also i guess the yen went up in fall 08 as the yen carry trade unwound?
I agree. The current 76 cents price on the dollar index ($USD) is either the bottom or the left side of a head&shoulders in which case a bottom will be around 75.5 cents. The markets are right at the resistance of a gap, so a little more drop in the dollar will close the gap in the markets - then the left shoulder, then markets go down!
Good Vid. Not sure I like the sound of buying the dollar but if the markets are due a sell off, then its kind of inevitable that there'll be a dash for cash - into the trash that the dollar is...interesting times.
Hi Tony
im new with fx trading
just wanted to clarify, during a carrying trade is the currency of the carry trade sold and another pair bought. For example during the yen carry trade of the early decade, was the yen sold and say another currency with higher interest rates bought eg the aussie dollar. So if the dollar is in a carry trade wouldnt the dollar be sold and show further weakness, as long as rates stay low.
Also i guess the yen went up in fall 08 as the yen carry trade unwound?
ukranjah 2 years ago
Great analysis Tony!
I agree. The current 76 cents price on the dollar index ($USD) is either the bottom or the left side of a head&shoulders in which case a bottom will be around 75.5 cents. The markets are right at the resistance of a gap, so a little more drop in the dollar will close the gap in the markets - then the left shoulder, then markets go down!
housechores 2 years ago
Good Vid. Not sure I like the sound of buying the dollar but if the markets are due a sell off, then its kind of inevitable that there'll be a dash for cash - into the trash that the dollar is...interesting times.
buffett1000 2 years ago