FxWirePro: Buy USD at dips targeting 10 percent upside heading into 2020

The USD is being battered across the board today, however, we expect the dips lower to be a fresh opportunity to long the USD. The stronger U.S. economy compared to the rest of the world and Trump administration’s pro-USD policies are likely to keep the USD in bid.

Today, the USD is down

• 0.35 percent against the euro.
• 0.31 percent against the Swiss franc.
• 0.45 percent against the Australian dollar.
• 0.58 percent against the New Zealand dollar.
• 0.14 percent against the Canadian dollar.
• And flat against the pound and the yen.

However, our calculations suggest that USD is likely to move higher largely due to dollar-positive trade stance, and due to tight dollar liquidity in the cash market.

Trade idea:

• Long FXCM USD index at the current price of 12300 and at dips with a target of 13650 and the stop loss around 11550 area