Has the US Dollar Crashed?



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#510: Has the US Dollar Crashed?

In this video:
00:24 – The recent US Dollar crash
01:08 – What’s caused the weakness in the USD?
02:11 – We analyse the Weekly and Daily Strength & Weakness
03:45 – What to do when a trade sets up against the trend? 
04:24 – Did you profit from the recent USD move
04:54 – Trading with Blueberry Markets

Has the US dollar crashed? Did you take advantage of it? And will that trend continue? Let’s talk about that and more right now at.

Hey there, traders. It’s Andrew Mitchem here at the Forex Trading Coach video and podcast number 510 today.

The recent US Dollar crash

I want to talk all about the recent crash that we have seen in the US dollar. I hope you’ve taken advantage of it and you’ve seen plenty of good trading opportunities. You have a look at the US Dollar Swiss franc chart, for example.

Right now as I’m recording this on the 14th of July 2023, the US dollar right now is at a level we’ve not seen for eight years back in 2015. Go and have a look at the charts. It’s just crashed. The US Swiss franc has absolutely crashed against other currencies. The US is also looking weak. Some of them are rates, highs or lows depending on which currency for the year. Some are now at levels not seen for several years as well.

What’s caused the weakness in the USD?

So what’s caused that? Well, as traders, to be perfectly honest with you, we don’t really need to worry about what’s caused it because there’s probably a multiple number of factors there that have caused that US dollar weakness. However, the important thing, especially as technical traders, is that we see this happening all out charts and we take advantage of these moves and the big trends because that’s how you can trade with the main trend.

If you see this continued US dollar weakness and you see other currencies looking particularly strong, then you start to bring in and start to bring in the strength and weakness analysis that we look at to help us to trade on the right side of the market. Of course, we’re still looking for the right technical setups in candle patterns and what part of the chart the candle has closed in, etc. like that?

Do we have room to move to our profit target? Have we got some form of stop loss protection or round number for our stop loss to help ourselves out there and to increase our probability of a successful trade.

We analyse the Weekly and Daily Strength & Weakness

But also at the Forex Trading Coach on a weekly basis, we look at and analyze the weekly charts and we post for our clients each week.

Every Monday morning, the likely strength and weakness directions on the bigger picture weekly charts on a daily basis. Each day we do exactly the same based off the daily chart. We look through the daily charts and we look at which currencies are looking particularly strong or particularly weak. And then we also mention which currency pairs are likely to move in which direction for that particular day.

Does that mean that every time if we say the US Swiss francs looking for sell opportunities, is this going to fall? No, it doesn’t. But what it does do is it gives us the bigger picture. If we have, let’s say, weakness on the US Swiss franc on the weekly chart and in on a particular day you see US Swiss franc weakness.

You then look for particularly for sell trades. So if you see bearish candles in the right part of the chart on any time frame, what that means that you are trading with the more immediate candle direction looking like it’s heading down on a daily basis, it looks like it’s weak on a weekly basis. There’s weakness in that pair.

It stands to reason and adds to your probability that with the right pattern in the right part of the chart and with that more daily and longer term direction, you really are putting all these factors in your favor of a successful trade outcome.

What to do when a trade sets up against the trend? 

Flipside of that, what it also does is if you were to see, let’s say, a bullish pattern on the US Swiss franc, it means that potentially you’re going to do one or two things.

You might say either one, I’m just not taking the trade altogether or two, I might take it, but at a reduced risk on that particular trade. And the choice is yours really when it comes to that, because it means you might be buying on a short term pullback, but knowing that the main direction is down. So by helping teach our clients how to look for that weekly and daily likely direction, it helps us to remain on the right side of the of the trends more often than not. And that’s a massive help for our trading.

What to do when a trade sets up against the trend? 

So my question to you is, have you over the last week or two taken advantage of that US dollar weakness on your charts? If you haven’t you got to ask yourself why not? Because if you go and have a look at your charts, especially that US Swiss franc as a really good example, you really should have taken advantage of that massive weakness in the US dollar.

If you haven’t, you need our help and we can certainly help to to get you educated so you know what you’re looking for and you can take advantage of those movements.

Trading with Blueberry Markets

If you’re out there looking for a good forex broker can highly recommend blueberry markets. I’ve mentioned them on all my weekly videos and my podcast because they are so good.

We have thousands of clients who now use blueberry. They are wonderful broker, they base over in Australia. You can open an account with them in pretty much every country apart from a few. And if you’re in the US then unfortunately you cannot trade through them. But for everybody else, have a look at blueberry markets. They’re a fantastic broker.

They offer the MT4/MT5 platform, a massive range of markets to look at and really good people and very tight spreads. I’ll put a link to them here on this post and podcast.

If you have any questions about today’s topic, please send me an email. [email protected] or if you’re on YouTube like and subscribe or leave a comment below and I’ll see you this time next week. Bye for now

Episode Title: #510: Has the US Dollar Crashed?

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