This is an amazing time for trading markets due to many valid and strong trends preferring the riskier assets and the stocks and against the US dollar. In the last week, one can see the most attractive opportunities for trading in the currency pairs of AUD/USD and EUR/USD.
The currency pair of EUR/USD closed down by 0.60% in the week and the currency pair of AUD/USD fell by 0.36% in the week so there was a total 0.48% averaged loss. The Forex market of last week saw one of the strongest elevations in the value of the US dollar while one of the strongest drops in the Swiss franc’s relative value. There is a long-term, strong, and valid trend against the relative value of the US dollar which indicates that it is a good time for trading Forex due to the greenback being the Forex market’s prime driver.
Market Sentiment And Fundamental Analysis Of The US Dollar
It appears that a long-term strong positive trend is there in favor of the stock markets plus the riskier currencies like the euro, Australian dollar, and British Pound. There is a strong long-term negative trend against the US dollar. However, there was a recovery by the USD last week. With the mass vaccinations in view, the retracement appears to be relatively small with the risk sentiment still there.
If President Donald Trump signed the new stimulus package into law, that would be a proper bullish move. Last week witnessed a very low volatility level inside the Forex market, despite the announcement of the trade deal negotiated between the UK and the EU because of the low market activity and a truncated week caused by this Christmas holiday. The low price movement will probably persist over a whole week in the Forex markets.
