This Currency Has Gone Nowhere

This year has been a really challenging one for currency traders. [Jeff Clark's Market Minute]( This Currency Has Gone Nowhere By Imre Gams, analyst, Market Minute This year has been a really challenging one for currency traders. At the very least, it’s been challenging for trend-following traders like me. That’s because until July 10, the dollar had basically gone nowhere the entire year. And the dollar is the king of the currency markets. Sure, it’s possible to trade other currencies, but what’s going on with the dollar has an impact on the entire market. And when the dollar is trading sideways, it means that volatility tends to be subdued. Recommended Link [He Declined to Go on CNBC – Now He’s Finally Revealing His “Millionaire Secret”]( [image]( During the 2008 financial crisis, millionaire trader Jeff Clark stunned the world when he managed to double his readers’ money 26 TIMES… CNBC caught wind of this and asked Jeff to come on live TV to explain his secret. Jeff politely said no. And now, years later, Jeff is back to finally bring this secret into the light. …Revealing how anyone can collect returns of huge gains in just 8 days… in bullish AND bearish markets! And why you need to IGNORE 99.9% of the market, instead focusing on only ONE stock. [(ticker revealed here)]( Jeff says: “I am tired of watching as investors lose their shirts buying risky assets… even my OWN SON lost -60% in crypto & tech stocks… now I’m going to give him a [“Financial Intervention”]( to help him win his account back in 2023!” [Click Here to Watch Jeff Demonstrate This ONE Stock Secret.]( -- But on July 10, the dollar broke out of an important chart pattern and started to sell off hard. [On Monday]( readers were walked through the importance of the dollar and the power the Fed has over every other central bank in the world. Today, we’re going to look at an updated chart of the dollar index (DXY) to see if there are any technical clues as to the future of the greenback. You can see that chart below. First, let’s look at the Bollinger bands. Bollinger bands are a great measure of market volatility. When prices break through the upper or lower bands, it’s a sign that the market is moving strongly either higher or lower. While a market can trade for a significant amount of time, it’s worth noting that the majority of the time, a market will trade between the upper and lower bands. This means that breaks beyond the upper or lower bands are important events that traders should be looking for. In fact, one of the first trading strategies I used early on in my career relied entirely on reversal trades found along those outer Bollinger bands. We can see that DXY has strongly pierced the lower Bollinger band before trading back inside of it. However, simply tagging one of the outer bands isn’t a good enough reason on its own to get into a trade. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. That’s why we also have the Relative Strength Index (RSI) at the bottom of the chart. The RSI is my favorite momentum indicator. It does a great job of helping identify turning points in the market when combined with another indicator like the Bollinger Bands. We can see how the RSI registered an extreme oversold reading at the same time prices broke below the lower Bollinger band. These two signals both suggest that the dollar is likely to continue trading higher for at least a little bit longer. However, my analysis suggests that this upside will end up being a bear market rally. That means that after the dollar gets a bit of relief, it’s likely to sell off once more against its peers. Aggressive traders could look to play both the long and short side. Trend-following traders, on the other hand, will wait out the rally and look for an opportunity to ride the dollar lower. As a currency trader, I’ll be watching the moves the dollar is making very closely. Once I see something interesting, you’ll receive an update right here in Market Minute. Happy trading, Imre Gams READER MAILBAG What’s been your experience trading currencies in 2023? Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com. IN CASE YOU MISSED IT… [SUDDEN DEATH ALERT]( Are we about to see the sudden death of the US dollar? [According to this shocking new video]( the government is planning to replace every single dollar in your checking and saving accounts with a new type of currency… One that could ruin millions of Americans. [Click here to see the details]( if this is true, you’ll need to move your cash before July 26. [Click here to get all the details before it’s too late.]( [image]( [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Jeff Clark Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-752-0820, Mon–Fri, 9am–7pm ET, or email us [here](mailto:contactus@jeffclarktrader.com). © 2023 Omnia Research, LLC. All rights reserved. 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