Currencies

US Dollar Chart: Is A Deeper Pullback Coming?

The US Dollar Index has been flexing its muscle since last summer and is up over 20% in less than a year. When putting the US Dollar rally into perspective, it truly has been rare and historic. Will the “historic” rise equate to a major long-term trend change higher? Perhaps. But there is something that investors of all asset classes should be aware of regarding King Dollar right now: momentum has

Why The Euro May Be Headed Higher In The Weeks Ahead

Over the past several weeks, the Euro has been attempting to put in a tradable bottom. In this post we’ll look at how that is taking shape. Note that this is an update to our March 13 post that suggested the Euro should find support for a medium-sized corrective move versus the U.S. Dollar. The share price for the Guggenheim Investments Currency Shares Euro ETF (symbol FXE) bounced for several

Emerging Markets (EEM) At Critical Juncture: Implications Abound

After a rough 2014 that carried over into early 2015, the Emerging Markets ETF (EEM) have finally begun to show some strong relative strength to the S&P 500 (SPX). But there are several reasons to watch this relationship beyond the two ticker symbols mentioned here. Before I dig into the relationship between the S&P 500 ETF (SPY) and the Emerging Markets ETF (and other implications), perhaps we should briefly recap Ratio

US Dollar Declines On US Jobs Report: What To Watch

The US Dollar decline accelerated this morning following the release of the March Non-Farm Payrolls (NFP) report – better known as “the jobs report”. The headline number for job creation came in significantly less than consensus estimates, causing further concern over the economic plight of the U.S. economy. For more insights on the jobs report, you can read my post from earlier today. To me, the jobs report was simply an

US Dollar: Indicator Most Overbought In More Than 15 Years

The US Dollar is finally taking a breather. Back on January 27th, I mentioned that the US Dollar Index looked exhausted after a monster run up. Since I wrote that article, the dollar rallied yet another 5% higher but has since backed off. It’s probably a good time to look at the charts again to see how are things shaping up for the US Dollar now? Looking at the chart below, this

The Euro Stabilizes At Bottom Of Bear Channel

The Euro has been oversold for many weeks now. And that goes to show you how oversold can become more oversold for traders trying to pick bottoms.  But there’s reason to believe that a rally may getting started here. Looking at the popular forex pair involving the Euro, the EURUSD (or how many Dollars buy one Euro), we can see that the Euro is stabilizing after testing support at the

Will Crude Oil Prices and Services Bottom With A USDCAD Top?

In order to fully comprehend the story of the Canadian Dollar (the Loonie), the US Dollar, Crude Oil, and the Oil Services Index, you may need to go back about a year and examine the price charts. In a post I wrote over a year ago (and I highly recommend reading), the charts were showing an amazing divergence between the Oil Services Index and the USDCAD. And it did indeed

Euro, US Dollar Currency ETFs Nearing Countertrend Moves

The U.S. Dollar Index and its associated ETF have reached and exceeded the targets we presented last week, and they are now approaching an area of even stronger resistance. Meanwhile a popular ETF for the Euro is approaching support. We believe there will be an opportunity for countertrend trades in both currency ETFs soon, which could last until mid-summer. Our newly released eBook highlights additional trading opportunities that are emerging

USDCAD Chart Setup: Bull Pennant May Lead Pair Higher

Sometimes the simplest charts show the best opportunities. No need for any momentum oscillators or other fancy tools here. Take the USDCAD chart for example. The USDCAD is a currency pair (U.S. Dollar and Canadian Dollar) which represents how many Canadian Loonies it takes to buy one dollar. The pair started tracing out a well defined bull pennant on the USDCAD chart at the beginning of February, within the context of