USD Turnaround

Foiled plot of blowing up planes in mid-flight; foiled hijack of a Qatar Airlines plane; evacuation of people from the London Underground. All in a day. Well, in the financial markets, emotions abound even though all we see are numbers. There is a lot of fear in the market now, and we may see a big breakout move from this.

Dollar bulls or dollar bears? It really is a tough decision to make as to which side of the fence to be on. It also depends on your trading time-frame too. If we have the confirmation of technicals with market sentiment, then great. The US dollar has returned to the picture once again as a safe-haven currency as the world suffers from senseless violence.

USD/CHF has just nicely broken out of its trading range of the past few days (not sure if it will close above the range yet at time of writing). We might just see a nice rebound in progress. Next level to look out for in USD/CHF is 1.2440 if it can break above 1.2400.

The US dollar is likely to prove a winner amid heightened global tensions. One possible spoiler: Around US$3 billion of US Treasury redemptions are due next week, which are eventually likely to provide a considerable weight on the dollar.

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