Archive | forex

US Dollar, Dead Cat Bounce

If you go back in time and read comments from 2-3 weeks ago I had called for deprecation in the dollar and the market delivered. I only bring this up because the move happened a lot quicker than I anticipated…from the high made 5/23 June futures are lower by 3.3% in just over 2 weeks. […]

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US Dollar; Are the Greenback’s days Numbered?

Let’s look at the US Dollar over the last 3.5 years. With the exception of June 2010, when the dollar traded as high as 88.80, the 84/84.50 level has served as stiff resistance. It appears a triple top pattern is being established on the weekly chart over the last three weeks. The horizontal red line […]

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Is the Nikkei Foreshadowing a Move in US Markets?

The Nikkei has moved in one direction the last six months but like any party they all come to a conclusion. This to me is a classic case why investors cannot fall asleep at the wheel and after significant gains it generally always makes sense to book profits and manage your expectations as markets do […]

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Currency War is Heating Back Up

Just before 1pm Chicago time the Yen broke par against the Dollar for the first time since the week of April 6, 2009 (low 98.67). Then the Euro fell out of bed. Then the Swiss got clubbed like a baby seal. The Aussie. The Pound. The Canadian. Everything but the Dollar got crushed. RIGHT AT […]

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British Pound, Pass the Baton to the Bears

In the last two months the Cable has appreciated 4.6% to lift prices to 3 1/2 month highs but prices are finding resistance at the 50% Fibonacci level just under 1.5600 in June futures. To put things into perspective this has not been a one way trade as prior to the latest appreciation the Pound […]

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US Dollar Index has Greenback in the Red

The Greenback is looking increasingly weak. I tell you this not as a recommendation to get short the dollar, but as a cue to look for bullish exposure in inversely correlated markets. Looking at a weekly chart, 84.00 is clearly the line in the sand. This level once acted as support (in 2010), and has […]

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Japanese Yen Contrarian Play

The Yen’s 8-month clobbering is no secret. It’s down over 20%! But what’s interesting now, in my eyes, is how the Yen seems unable to trade below parity with the dollar. Recent data out of Japan shows inflation expectations are on the rise, so why not see a bounce in Japan’s currency after such a […]

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Canadian Dollar, North of the Border

The Canadian dollar has made strides in the last six weeks. After bouncing off support at 0.9650, we’ve now retraced 38.2% of the downtrend that began last September. Prices are north of all major moving averages I use in FX and I see higher trade ahead for the Loonie, especially in light of recent moves […]

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