Currencies

US Dollar Chart Pattern: CounterTrend Move Imminent

The US Dollar Index has made a big move higher since mid 2014. The world’s financial landscape is changing, and several markets, including the Forex, are in flux. How this shakes out longer-term is another story, but over the near term the US Dollar chart pattern may be setting up for a countertrend move. My particular skill set is finding PATTERNS that repeat based on musical math and then take a

Silver Copper Ratio Breakout Triggers Pairs Trade

Silver has been setting up pretty well for a trade. I noticed this a couple weeks back and posted about a pairs trade with Copper (long Silver, short Copper). You can read that post here.  Why was I interested in this trade? Well, in short, Silver looked like it was ready to move higher while Copper still looked week.  And this was visible on the Silver Copper ratio chart. The chart below

Chart: The US Dollar Index Is At Critical Juncture

The US Dollar Index has been chugging higher for 7 straight months. And each time it looks ready to pullback, it recharges its engine and goes higher. Many investors probably downplayed the rising Dollar because, amongst other things, it was still in a long-term downtrend… well it’s time that we all pay close attention to that downtrend line. The US Dollar Index is currently trading (overnight futures) above 93, with a recent

Euro Searching For A Bottom: Will The ECB Deliver?

The EURO vs US Dollar fall from grace has been, for all purposes, relentless. Economic indicators continue to be weak as investors anxiously await the ECB. Will Mr. Draghi and the ECB stem the Euro collapse? Will the next Euro target matter? I’ve tried with little success, to look for a counter trend bounce, to in turn position for another short opportunity. While the levels have been respected – the first

Euro Likely To Move Lower Before A Tradable Bounce

Trading based on exchange rates can be especially rewarding because of the tendency of certain currency pairs to maintain a trend. If you find a good entry, it is often possible to leave a trade on for longer than you would with equity indices. However, one of the difficulties for newer traders (and even for experienced traders) is finding a good entry with confirmation before the move picks up speed.

USDJPY: Will This Reversal Pattern Trigger A Pullback?

The USDJPY currency pair has been a great momentum play for currency traders over the past 2 years, as it has risen from the mid 70’s to around 120 in under 3 years time. A combination of additional easing by the Japanese central bank and the end of QE have provided a boost to the rally. But, rallies don’t move in straight lines forever. So what’s the USDJPY chart telling us

Why The US Dollar Index May Be Nearing A Pullback?

The US Dollar has taken the financial markets (and investors) by surprise in 2014. But not simply because it rallied… but because the relentless nature of the rally. Several factors have provided tailwinds, including economic weakness in Japan, Europe, China, Russia, etc… Well, basically it looks like the U.S.’s mild recovery is holding the world up. That said, it’s time for a quick US Dollar Index technical update. The US Dollar

Euro Chart Update: Bottom Around The Corner

The key .9438 retracement level is coming into play with regards to the EURO vs USD. My last post on the Euro highlighted this level and I continue to think it will produce a bottom. With the most recent action seeing the Euro head lower, I wanted to provide an update and some additional thoughts. See updated charts below. Please continue to follow my posts here to keep up to date with

Correlation Watch: Crude, Oil Services, and The Loonie

Why am I looking for SUPPORT in Crude Oil and the Oil Services Index (OSX)? Because, as you will see, they correlate nicely to the US Dollar (USD) vs. the Canadian Dollar (CAD/Loonie) and as a spot FX trader/investor I like to see as many correlations as I can. It’s that simple… Am I trying to “catch the falling knife of crude?”  No Am I trying to “make a great call?”

Forex Trading Analysis: US Dollar Pairs In Focus

Here’s a quick update on the Forex trading environment. The price action in the dollar based pairs suggests that some further consolidation/corrective action is underway. I think this will present us with trading opportunities in USD/JPY, USD/SGD (longs) as well as shorts in EUR/GBP Note:  the Intra-Day FX Forecast highlights price direction and likely price targets/stops designed for traders looking at Forex trading opportunities over the next several hours. These are not