A Short-Term Dollar Play

Published on
June 7th, 2019
Duration
11 minutes


A Short-Term Dollar Play

Trade Ideas ·
Featuring Joe Perry

Published on: June 7th, 2019 • Duration: 11 minutes

Joe Perry, CMT, of ForexAnalytix, has been bullish on the U.S. dollar throughout the past year, but has recently altered his stance to take advantage of the coming short-term down move in the dollar. He considers the macro backdrop, analyzes the technical setup for why the dollar should weaken, and discusses how to make the trade using the euro, in this interview with Jake Merl. Filmed on June 6, 2019.

Comments

Transcript

  • ek
    eric k.
    7 June 2019 @ 18:35
    Why not long Gold?
    • DR
      David R.
      7 June 2019 @ 22:42
      Probably because gold hasn't quite yet broken out technically yet the way that USD has broken down technically? But it's close. Close but no cigar, yet.
  • DR
    David R.
    7 June 2019 @ 15:31
    Technically, the modest dollar rally over the past year was clearly a corrective pattern that reversed near 618 fib as I expected and have previously written. Another massive motive wave down is lurking for USD, likely similar to the ~20% dollar plunge in 2017-18. Also, the US economy is weakening faster than any other major economic region in the world now, especially vs emerging Asia (Hedgeye has US economy entering Red 4 - the worst place - for next quarter and Asia going into Green 2 or 1 for the rest of the year)... So I'd rather short (and I already am short) the weak USD against some select Asian EM currencies which are already up 5-9% against USD. Plus the dollar is massively over-owned by dollar bulls in denial, so there's heaps of room for the weak dollar to collapse bigly.