Category Archives: FOREX

Triple-Bottom Bounce in Store for US Dollar?

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The US Dollar ($USD) has dropped to a triple-bottom major support level of 92.00 and is attempting to stabilize, as shown on the following Daily chart. Fairly major resistance lies overhead at 94.00.

All three technical indicators are still in downtrend and the RSI is still below the 50 level, although the MACD and PMO have recently crossed over to the upside.

It is still trading under the bearish influence of a Death Cross moving average formation, so it’s still extremely vulnerable to a break below 92.00 and a swift drop down to its next major support level of 84.00.

Such a drop could be very threatening for equities, inasmuch as further weakness in both of these could see investors incur fairly catastrophic financial losses. As such, we may see $USD buyers step in any time now. (more…)

Dollar Finally Ready to Bounce?

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Every since 2017 began,the US dollar has had the stuffing knocked out of it. I wanted to point out that the dollar, as viewed through symbol UUP, is getting very close to the lowest levels of the past two and a half years. If this double bottom holds, we could get a nice bounce (which would drive down the price of gold in a big hurry). I’m playing this by way of an FXE short (that is, the Euro), which I entered about an hour ago.

0801-uup

Make Way for Uncle Buck

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It has been a contrarian trade that has not yet worked out; by that I mean my short position on the Euro and preparation for a firming US dollar. Yesterday the market cheered the supposedly dovish Fed, and USD got smeared again as the world’s counter party paper boosted assets far and wide… on nothing but perceptions and a hell of a lot of momentum and gaming on FOMC day.

USD opened weak again today but so far at least, is sporting a Hammer which, if it stays in play, would be a bullish reversal candle.

usd

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