forex USD Shows Its Traits as a Safe Haven Currency

[Anzo Lim 0]

https://www.wikifx.com/cn_en/

USDX has rallied on last Thursday and Friday. Tension between US and the Middle East, together with US’ latest sanctions targeting the Cuban Defense Minister challenged the market’s risk appetite and supported demands for risk aversion.

 

Technically, the post-Christmas falling trend of USDX will halt at least for the time being. There’s no signs that the Fed will further cut interest rate in the new year, which can offer US dollar more support. Notably, 2020 is the election year in US, and historical data suggests USD usually fares well on election years, falling only twice in all election years during the past 4 decades. So it may be a good idea to increase holding of US dollar and short euro.

 

USDX daily pivot points: 96.58

 

S1 96.38            R1 96.78

 

S2 96.18            R2 96.98

Edited January 6, 2020 by Anzo Lim