Slope of Hope Blog Posts

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Don’t Sleep on Forex (by LZ)

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The biggest looming breaks in the market aren’t NQ, RTY or ZB, but several U.S. dollar crosses.

The yen, yuan and rupee all look like they’re receiving central bank support. The dip in USDINR might hint at pressure alleviating. I expect they’ll all move together, but yen and yuan are the ones that can rock the markets if they break down (breakouts for USD on these charts). China is still trying to force the yuan higher. USDCNY consistently trading about 1.8 percent above the central parity rate. 

Finally, don’t forget USDMXN which for whatever reason, is positively correlated with VIX. Does USDMXN look bullish to you?

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