Currencies

US Dollar Strength Continues: Weekly Close Important

The US Dollar has continued to punish those that bet against it. It has been overbought for some time but as most seasoned investors know, overbought can stay overbought for longer than one thinks. This week the US Dollar Index (DX) broke through the July 8, 2013 weekly high of 84.965. This has put the market on notice and may signal more near-term upside. But, for that to happen, we’d

3 ETFs For Trading Japanese Equities Amid Yen Weakness

There have been a couple of developments in the Japanese markets that traders are (or should be) monitoring. In the equity markets, there is a bullish consolidation pattern developing that active investors with an intermediate-term horizon may benefit from. Yet, at the same time, Japanese equities investors will need to keep an eye on the currency market with a focus on the impact of a weakening trend in the Japanese Yen’s value to the US Dollar.

Euro: Now Trading At Its Most Oversold, Ever

The EUR/USD Selloff Continues Unabated, But A Historic Extreme In Short-Term Momentum Signals A Euro Relief Rally May Be At-Hand.  EUR/USD tagged its lowest 14-day RSI reading ever (Since January 1999) today, signaling it is massively, historically oversold. Past RSI prints near 20 are few; but where they have occurred vicious short-covering rallies aren’t far behind – no matter the monetary/fiscal policy regime – registering double-digit gains in a matter

USDJPY Breaking Higher: Will Bond Yields Play Catch Up?

Traders, I’d like to share an interesting inter-market relationship with you this morning. In the chart below, I’ve tracked the USDJPY vs the 10 Yield Treasury Yield (TNX). I think this chart could be quite insightful across asset classes as a whole. Allow me to briefly offer my thoughts. There is a pretty strong relationship between higher levels in 10-year rates and higher levels in USDJPY (and vice versa) Currently, USDJPY is

Are Gold Prices Taking Cues From The Swiss Franc?

Three years ago yesterday, I shared a chart highlighting why Gold may underperform for years to come. The chart looked at the correlation between the Swiss Franc and Gold and how both were tagging ascending long-term resistance at the same time. The chart is shown again for your reference below. It was the centerpiece of a post entitled, “Swiss Franc Is Suggesting That Gold Will Be Flat-To-Down For Years To Come!”   Gold vs

EURAUD: A Case for the Copsey Modified Elliott Wave

As you all may know from previous posts about how I analyze and use harmonic patterns, I often look for patterns in the larger context of the overall trend. And further, when they appear in clear Ellott Wave fractals, I place a higher percentage on the possibility of a reversal.The Forex Chart Spotlight today is the EURAUD. As I was monitoring the EURAUD daily time frame, I also noticed that there

The US Dollar Index Is Nearing A Major Resistance Level

Today I’d like to break down some key Fibonacci levels on the US Dollar Index. Let’s start with a longer-term view of the US Dollar. Measuring the move from the September 2013 high to the May 2014 low creates resistance levels of 81.028 and 81.499. As noted on the chart, price was rejected at these levels in January, February and June 2014. A close on a daily candle above 81.499

Selling Into Strength: The EUR/CAD Short Setup

Based on recent wave structure, the EUR/CAD has likely completed 5-waves to the downside and should be set for a corrective rally back towards 1.4565 at which point I will be on the lookout to establish a short position. However, traders will want to make sure that EUR/USD does not gather too much upside strength, as that may offset any CAD strength relative to EUR/USD.  For instance, a push above 1.3540

Breakdown: Why EUR/USD Volatility Is Ready to Resume

Single-day paroxysms brought about by geopolitical unrest and local black swan events aside, stocks continue to calmly shuffle through a dream-like state of imploded volatility as the “bubble in certainty” persists.  While many active investors are focused primary on equities, however, it’s important to recall this condition of zombie volatility is global in scope, sweeping in nearly every asset class across most developed and emerging markets. One of the most