The combination of Wallstreet showing positive numbers and the dollar strengthening up may be a sign the worst recession since the great depression is 'officially' over and it's about time! It won't be easy to recover this time and there's a lot of debate on how to crawl out of this huge hole. But that's a whole other story. The issue is that how far 'climb' of the USD index will go. Some analyst speculate it has bottomed out already and it would be a good time to buy against the US dollar. I think it really depends on what's on the calendar, and foremost Wallstreet. If they can continue this rally the dollar index might continue to climb also. Which is the complete opposite how it use to be when the recession was at full force not that long ago. Things might go back to normal where we can apply basic economics 101 to the Forex and stock market. Who knows, but the upcoming week is crucial to find that out!
For my pair in particular next week it's going to be interesting to see.
The pair dropped in a matter of hours over 300+ pips! Some people made a lot of money riding that train. Unfortunately I wasn't one of them. But a move so sudden always comes with 'aftershocks', the question in this case is, has it bottomed out and is it time to start buying or will it continue on it's way down. Time will tell, I'm cautious and only trade if most indicators on my trading platform suggest to do so, which did not happen here.