Currencies

US Dollar Index Overbought: Is A Recharge In Order?

The US Dollar Index (CURRENCY:USD) is starting to catch traders’ eyes again.  The recent rally has been relentless, hitting Gold and Emerging Markets over the head. However, the US Dollar rally is now extremely overbought and looks due for a pause. Using the US Dollar Index Bullish ETF (NYSEARCA:UUP) as…

A Look At The Gold (GLD), T-Bonds, Dollar Market Triangle

Over the past year, there’s been a very interesting relationship between the Gold (NYSEARCA:GLD), the U.S. Dollar (NYSEARCA:UUP), and Treasury Bonds (NASDAQ:TLT). I’ve talked about this relationship (and chart below) many times in my newsletter. There has been a relentless push into the US Dollar (via UUP below) and out…

Is The Euro About To Fall Through The Floor?

The Euro Currency (CURRENCY:EUR) Looks Vulnerable: A closer look via the CurrencyShares Euro ETF (NYSEARCA:FXE) As the U.S. Dollar continues to strengthen, we are watching to see how the CurrencyShares Euro ETF (FXE) will react to nearby support. In our main Elliott wave scenario, the chart should develop into a…

British Pound Currency (GBP/USD): A Bottom Is Lurking Nearby

The British Pound currency (GBPUSD) has been taking on water since the Brexit vote. And there has been an uptick in the amount of news and negativity surrounding the Pound. Could this ultimately lead to a trading bottom?  Time and price are agreeing that a bottom is coming soon, perhaps…

The Chinese Yuan… It Doesn’t Matter Until It Does

The Chinese Yuan (CURRENCY:CNY) or Renminbi is on the move again. But part of the reason why markets are shrugging it off is that it’s really more of a US dollar thing than a Renminbi thing as the chart below shows. The chart shows the USDCNY exchange rate vs the…

U.S. Dollar Rally: A Tale Of Two Chart Patterns

The U.S. Dollar Index has been trading in a wide consolidation pattern over the last 18 months or so.  But after the recent U.S. Dollar rally, that consolidation has formed two distinct chart patterns. And as you may have guessed… one is bullish while the other is bearish. As you…

British Pound Fund ETF (FXB) Finds Currency Support

Many traders make use of Elliott wave analysis because of its ability to forecast turns and reversals in a market. However its other greatest strength is often overlooked – its ability to alert a trader quickly when a forecast turns out to be wrong. That was the case with our…

Japanese Yen Rally At Crossroads: Watch This Resistance!

After experiencing a very newsworthy decline from 2012 to 2015, the Japanese Yen has recovered strongly in 2016. But the Japanese Yen rally is “running” into resistance. You can see this in the chart below. The chart looks at the past 20 years.  As you can see, the Yen spent the…

Japan Markets: The Great Keynesian Fail Of 2016?

Today, we look at the Japanese markets and their big monetary policy gamble that has yet to pay off. Interest rates went to zero, then negative. How far will policy makers go to create growth? We will likely find out soon if Japanese markets continue to lag and/or inter market…