Last we week we wrote the following under the $USD overview. “The weekly supply remains in play and we’ve recently seen a push upwards
in #Gold. Talks about possible war in the Ukraine could be used to lure traders in long the dollar as they prepare to drop it.” We can now see what took place on the charts. We wrote that on Feb 20th and on the 24th was the news headlines coming out and saying the Russians invade the Ukraine. Staying focused on what we could see on our chart and after examining the evidence we gathered we were not lured into buying the #Dollar as so many were.
Look at the chart of the Dollar. We outlined in GREEN when retail investors/traders started buying the dollar heavily on the news.
Where did price reach?
Right into areas of supply, where the Banks came in and sold their positions to them. Have we not been watching this chart and outlining the major supply area price was contacting, have we not said time after time that we should be expecting the banks to lure traders into going long the dollar so they can exit their longs, profit and then enter into shorts. This is what the odds are.
Isn’t it amazing how all the news and the circumstances all coincides with what the Bankers need at this very moment? Very coincidental isn’t it!? Right we know better!
This market is incredible isn’t it. It’s great for some and very bad for the majority. We are very lucky to be in the know and to be able to use our knowledge to profit from what we know to be true about how price moves.
I’ve situated my portfolio very nicely and I’ve mentioned some of my trade ideas in the full report.
Remember we are naturally drawn to drama and get excited when faced with it. This is why we like movies, books etc. This is used against us, our job as traders is to remain in control of our emotions and to think logically about what we do and if you can master this then you will reap the rewards of doing so.
Time for me to get back to studying charts and preparing to add to my positions. See you around fellow traders!
Kevin Araujo