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,…

Short-term Forex Forecasts And Analysis

Good morning traders.  We finally got a little bit of action overnight – some of the action was discussed on my site yesterday.  Below are my latest updates and forex forecasts. Note:  the Short-Term Forex Forecasts highlight price direction and likely price targets/stops over the next several hours. So this is…

10 Reasons Investor Confusion Reigns Supreme In 2014

Considering the way the markets behaved during the first half of the year, it should come as no surprise that there are high levels of investor confusion surrounding the near-term direction (and theme) of the markets. On a day-to-day basis, investor sentiment ranges from a head scratch to a high five to you gotta…

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…

The Global Reach of the Volatility Crash

Aside from the high likelihood of keeping that premium you sold, another benefit of the ultra-low depths that the CBOE Volatility Index (VIX) keeps plumbing is the solid analysis cultivated as the wary and complacent alike struggle to figure out what’s next. The eerie calm that sets in during unusual…

Are Japanese Markets Signaling Risk Off?

If there’s any developed market evocative of the shift in tone between 2013 and 2014, it’s Japanese Equities. After a blistering 57% rise (it’s best in 4 decades), the Nikkei has slid -14% YTD (v. the S&P 500’s 1.7% gain). But the Japanese markets are deeper and more complex than…

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…

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,…

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…