Scenario A — Strong USD
Strategy: Trend-following
Buy USD pairs
Use trailing stop
Trade in direction of momentum
Signals:
DXY above 103
Fed delaying rate cuts
High inflation
Scenario B — Weak USD
Strategy: Breakout & reversal
Sell USD after CPI/NFP shocks
Buy EUR/USD, GBP/USD
Buy Gold
Signals:
DXY drops below 101
Fed signals rate cuts
US economic slowdown
Risk Management (Essential)
Risk 1% per trade
Use stop-loss under last swing point
Avoid trading 5 minutes before big US news
Strategy: Trend-following
Buy USD pairs
Use trailing stop
Trade in direction of momentum
Signals:
DXY above 103
Fed delaying rate cuts
High inflation
Scenario B — Weak USD
Strategy: Breakout & reversal
Sell USD after CPI/NFP shocks
Buy EUR/USD, GBP/USD
Buy Gold
Signals:
DXY drops below 101
Fed signals rate cuts
US economic slowdown
Risk Management (Essential)
Risk 1% per trade
Use stop-loss under last swing point
Avoid trading 5 minutes before big US news