I've got no new trade idea today, so I'm posting this quarterly chart of the DXY going all the way back to 1964. Although I'm currently short USD vs EUR following the ridiculous Trump presser, I still expect a stronger USD in the medium to long term.
Whether the DXY will test its support at 100 first or turn around and go straight for the 105 handle depends strongly on what Donald Trump and his cabinet will be doing after 20 January and how quickly they will go about it. We already know they're set on repealing Obamacare as soon as possible, but market participants are still waiting for details on Trump's promised economic stimulus package. Needless to say, pressuring American companies into adding more jobs in the U.S. is one thing, delivering real change across the board will be far more challenging.
I'm not expecting any big moves in the USD before the inauguration and hence my short-term target in EURUSD remains 1.0700-20.
Realized YTD return: +1.06% from 1 trade
Total YTD return: +1.06% from 2 trades