From the Savvy Trader: Are the FX dynamics changing – Forex Trading Forum
From the Savvy Trader: Are the FX dynamics changing
The huge increase in EU defense spending coupled with The US tariffs may be changing the dynamics of the FX market from a responsive sell high buy low market to a trending market within a bigger neutral range.
If this is so then the extent of trend may surprise the complacent.
Let’s look at a timeframe of the next 3+ months
Look at patterns and match the moves (see chart with the green boxes)
It is possible that :
1. EurUsd target around the 1.1600-1.1800 area
2. GbpUsd target around 1.3800 and possibly 1.4200
and
3. UsdJpy target 132-128 and possibly the low 120s
Trending markets which are accumulation markets tend to have light pullbacks
