Short- and long-term topping formations in addition to continued dollar strength presents a short opportunity. Also, the negative correlation with USDJPY, which has broken resistance to the upside, further endorse this trade.
DXY has failed to move about 100 in the short term, setting up a potential fall to test support. Yen has been the strongest currency against the dollar allowing an entry here with optimal Risk-Reward.
Likely test of last years low wick of ~116.00
CHF and EUR positive correlation has held up so far in 2016, opening the door far a long entry here. The only shocks to the downside would come from China devaluation/dollar selling overnight. With that considered, long at this breakout with three points of contact on support should show profits.
With the constant US dollar selling by the People's Bank of China, the euro has been a main beneficiary. However, market forces have returned and, keeping the rate below 1.09, maintain a bearish trend.
Since its high close to 1800, gold has been steadily gone down. The current level puts the yellow metal almost half of its peak and someone is betting big its the bottom.
1067 has shown to be the Alamo of gold traders: not away from danger but a standard for the rally point.
Strength and gain in the face of a ...
The ceiling of 100 has been a historically stubborn level. But looking at the same level on a longer horizon also shows the explosion of dollar strength above 100. The market only expects two rate hikes in 2016 despite the Fed dot plot estimating four. The market has not begun to factor in additional moves and ...
With the technical validation of the fundamental environment, it appears the new range for EURUSD is 1.08 to 1.055
The continuous slide of USDJPY without follow-through in the dollar lends itself to the conclusion of winding down long positions in USDJPY lacking the apparent short in dollar alone. The prevailing ...