Chart Watch: US Dollar, Treasuries, and Stocks Flash Caution

With all the back and forth in the markets, several key assets have struggled of late. Notably, the US Dollar, US treasury bonds, and US equities. Active investors have been more inclined to sell rallies in each of these “big 3″ assets. The biggest pullbacks have come in the US Dollar and 20+ Year Treasury Bond ETF (TLT), while the S&P 500 (SPX) has simply moved sideways, failing several times to

Australian Dollar: Chart Suggests A Rally Followed By Final Wave Lower

The Australian Dollar is putting together a nice rally for Forex traders. Also known as the Aussie and traded under the Forex pair AUDUSD, the Australian Dollar looks to be putting in a corrective rally before a final drop to its downside target. Although this may take several weeks to unfold, the pattern should offer opportunity for disciplined currency traders. The AUDUSD briefly touched above .80 today and is currently trading

Gasoline Prices Move Higher, Likely To Top By Mid-Summer

A commodity currency describes currencies of countries that rely heavily on the production and export of commodities. And three commodity currencies that I often use in my commodities analysis are the Australian “Aussie” (AUDUSD), New Zealand “Kiwi” (NZDUSD) and Canadian “Loonie” (CADUSD). I find that these currencies can be helpful in exploring correlations with different commodities. And today we’ll look at Gasoline prices and show an interesting correlation to the Aussie. But

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