S&P 500 TACO trade – USD weaker on rate cut chatter, US Congress passes stable-coin law [Video]

In today’s Market Outlook, let’s take a look at Forex Trading on Bitcoin, BTC/USD, NZD/USD, EUR/USD, AUD/USD, the Dow Jones Industrial Average, and the S&P 500.

Over the last week, the US Indices like the S&P 500 have been on a roller coaster.

We see tariff news driving falls and gaps, and one drop based on the potential firing of the US Fed chairman.

Then, in a White House meeting, it was announced that Jerome Powell would NOT be fired and investors bought back in.

If you are paying attention to the news, you can execute the TACO trade and buy the dip.

If we move out, we can see that the S&P 500 is at all-time highs.

If we look at the Dow Jones Industrial Average, we see that price action has broken this bearish channel but is still short of all-time highs.

Again, any negative tariff or economic news could drive prices lower, giving us more opportunities to buy the dip.

There is clear disagreement among FOMC members as to the next Interest rate decision on 30 July.

This has caused USD to weaken slightly.

If we look at many USD pairs like NZDUSD, EURUSD, and AUDUSD, we see price action at the upper trend line in a bear run and the stochastic oscillator well overbought.

Price action on Bitcoin has stalled at $120,000 and has formed an interesting technical pattern.

US Congress has passed a bill on stablecoins, and it should be signed soon ,which will likely affect the price of most cryptocurrencies.