In an article a week ago “US Dollar Outlook - Dollar to Strengthen Further” we postulated that the dollar would have a good week and so it has proved. Our logic was purely based upon trader psychology NOT the fundamentals or news. This week’s action shows graphically how important trader psychology is.
Always remember this is the equation for market movement:
Fundamentals + Trader psychology = Price
The fundamentals are actually not as important as how investors perceive them.




