The disparity between failure and success in the trading of Forex depends on various factors but the key factor is opting for the correct pair of currency for trading every week. The US dollar has been fluctuating and similarly, the trading approaches in pairs will determine the accesses and exits.
US Dollar On November 22
The previous week there were some very attractive opportunities for transactions for the short trade by pairing the currencies US dollar and Japanese yen. The long trade was more than 3600 during the S&P 500 Index. The pair of currencies, US dollar, and yen witnessed a decline of almost 0.07% throughout the entire week following the ending of the stock market at a rate 362.92 as of Monday while the S&P 500 Index ended on Friday by dropping 1.91% of the price. As a result, this combination did not prove to be very profitable for investors.
In the preceding week, the market of Forex witnessed its strongest increase in the average value in the dollar of New Zealand. On the other hand, the US dollar experienced the strongest decline in the average value in the stock market.
The past week has been the most stable week in the stock market for a long time. The volatility has been quite less and owing to that several significant news contents except for the improvement in the economic data of Australia and a little dovish indication from the central bank of Australia. Donald Trump has been continually denying the results of the US presidential elections and has accused the election officials of indulging in fraudulent voting and counting maneuver. He has been repeatedly declaring that he has won the presidential elections. However, Joe Biden is the current President-elect by winning with a 4% edge. The recounting of the votes of Georgia had little effect and did nothing in favor of Trump.
US Dollar Analysis
Once the Democrats take-over the administration, they will push for the stimulus package which will encourage the stock market of the US but might deteriorate the US dollar.
The US has been experiencing new highs in the number of new and daily coronavirus cases, although there is good hope for the COVID-19 vaccine from Pfizer, AstraZeneca, and other pharmaceutical companies.
The US dollar has been bullish this week that closed with a low range that indicated to have a bearish trend. The upcoming week seems to be downhill for the US dollar.
The USD/NZD pair closed at 2.5 which is bullish and held their resistance zone for quite some time.
Bitcoin has been experiencing an all-time high and has a positive future ahead.
The long trades of short-term this week will be cautious against the US dollar and it’s pairing with NZD and more towards BTC.