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Originally Posted by 20pipsaday
ok so lets swing this topic around then....
lets say I go with you guys, and I do believe the dollar could have a large rally (10% rally)
what pair would you think would be the best to go long USD on?
One of the previous posts mentioned AUDUSD and that does sound good to me:
1) decreasing rate differential audusd
2) gdp forecasts for Oz are being downgraded
3) ridiculously high deficits and housing bubble (thanks to previous poster)
4) Technically the band from .79 to .82 has multiple (more than 10 years?) of resistance
only problem is that the RBA seems to be warning of future rate hikes? maybe we arent at the top yet? wait for .80? wait for .82?
so pretty much I have already picked USDJPY as my bearish USD trade, that trade is already on.
now I am looking for my bullish USD trade, open for suggestions and comments (these trades are to be 6 month+ trades for me at least)
thanks all
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the dollar index is weighted with 57% of euros 13% yen 11% Cable 9% cad and 4% CHF . If the dollar index ever does break out i would want to be long the dollar against the euro.
You could even make your own basket of pairs, to go long the dollar, splitting them up by the same percentage the dollar index is made up of.
Either way, if the dollar does bounce, there will be no exceptions. Value should adjust to everything.