Currencies

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

AUD/NZD May Be Setting Up For A Break Lower

As a new contributor to See It Market, I thought it would be good to focus on some FX setups and analysis out of the gate. That said, AUD/NZD could be interesting from a short perspective here. The chart below highlights why this could offer a compelling risk/reward upon a break lower. AUD/NZD Wave 4 Setup Chart   That said, there are some considerations to the current setup on AUD/NZD. As

3 Charts Highlighting Importance Of US Dollar 80 Level

The US Dollar is currently trading at a very interesting level.  The US Dollar 80 level has acted as a major pivot area in the past. It’s also been an area where the biggest swings have taken place.  To illustrate this, let’s take a look at a few charts. The first chart is a monthly chart that goes back to 1987. It shows that the US Dollar 80 level has

Chartology: Forex Pairs On Watch

Like equity markets, foreign exchange is replete with major patterns poised to break out or break down in the near-term.  Here’s a wide-ranging, multi time frame glance at a selection of these patterns, beginning with a sub-set of forex pairs broadly watched as a barometer of risk appetite: the Yen Crosses. Japanese Yen Crosses USD/JPY – Daily: Ascending Broadening Wedge In correlation with the Japanese Nikkei, USD/JPY declined steeply in

US Dollar On The Brink?

I’m an avid watcher of the US Dollar. One of the reasons I like to monitor the US Dollar is because it can provide insights as to where other asset classes may be heading. In particular, commodities like Gold, Silver, and Crude Oil often take cues from the Dollar. Typically, a lower US Dollar means higher commodity and precious metal prices. Below are a few charts that I found interesting

Risk-Off? Yen Crosses Open Sharply Lower

Japanese Yen crosses opened trade in New Zealand and Sydney on Monday morning with a sharp opening drop, with AUD/JPY leading on a 50 pip drop to 93.10 before recovering modestly.  Collectively regarded as a barometer of risk appetite because of the JPY’s safe haven status and their general popularity as a carry trade, flows into and out of the JPY in pairs such as EUR/JPY, USD/JPY and AUD/JPY often

EUR/USD Pushes Higher Toward Major Technical Decision

EUR/USD smashed higher this morning after Eurostat’s Flash CPI estimate pegged the Euro Area’s annualized inflation rate for a third consecutive reading at 0.8%.  Though less than half the European Central Bank’s (ECB) target rate of 2%, today’s print was higher than forecast and by various accounts perceived as softening recently elevated expectations the ECB would initiate a QE program of its own later in the year. Within one minute of

Chartology: IBB, SPY, ISIS, SOX, AAPL, BAC, USDJPY, GLD

As today’s session closes out on the benchmark S&P 500 (SPX) as an indecisive spinning top candlestick with bulls failing to press yesterday’s attainment of all-time highs, here are several similarly disconcerting charts that have been on watch the past several sessions. Over the weekend I did a couple of write-ups, giving separate cases supporting a measure of technical pessimism for the NASDAQ (NDX and the Composite) and Biotech.  Juxtaposing