Currencies

The Importance Of The All Ordinaries Index And AUDJPY

The All Ordinaries Index has yet to hit its SELL pattern target so this pattern is still valid.  The zone of 5760-5835 is the key with the old realiable .786 Fibonacci retracement up at 6060 the highest it should go if the sell pattern remains valid. As you know we NEVER know which one works or doesn’t… What makes this particularly relevant, in my HUMBLED opinion is its correlation to the

US Dollar Update: More Upside For The Buck?

The US Dollar made a big move higher over the summer and spent much of October consolidating those gains. Is it ready to move higher again? On September 12th, 2014 I wrote about the strength of the US Dollar.  In that post I commented on some characteristics of the Dollar’s move higher that indicated more upside was coming. I highlighted a couple points of interest around bullish consolidation phases: 2 areas

US Dollar: Long Term Prospects Look Good

For six and a half years the US Dollar Index (DX) has trended sideways. The technical signs on the wall favor this trend resolving higher. If that panned out and the next cyclical bull trend were akin to the last one when the 20th century was coming to a close, we’d be looking at upside potential to 121.6. This outlook has implications for foreign exchange traders – there could be

US Dollar Index And Select USD Pairs Trade Setups

The week is starting off with some modest US Dollar Index (DXC) weakness, but nothing that was unexpected. However, I have adjusted the wave count to account for this. I am comfortable remaining long in USD/SGD as it is performing better while the US Dollar Index has been selling off. The same goes for USD/JPY and USD/CHF – pairs we will need to keep an eye on for possible longs when DXC

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