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US Dollar Index Rallying Back Into Resistance -- Time to Add Shorts!
The Japanese yen still looks compelling, but the Swiss franc has started to break down.
Cody Tafel    

The US Dollar Index has rallied back above the 80 resistance level, and I'd look to establish short positions here with a tight stop. The 200-day moving average lies above around 80.55, so that should provide a good backstop to short against. It still looks like the US dollar could roll over back into the mid-70s, so the risk-reward on short positions at current levels makes sense to me (see the chart below).


Click to enlarge

The Japanese yen continues to percolate just below the 200-day moving average, and I think this consolidation phase is building up some power to break through and rally into quarter end. The US dollar failing at the 80 resistance level would obviously help give a bid to the yen, and I think long yen positions provide an attractive hedge if we enter another risk-off environment later this month.


Click to enlarge

The Swiss franc was acting well until recently, and it has started to violate support levels. It needs to find support right here, otherwise caution should be warranted, and a close below 1.125 would have me moving to the sidelines on the Swiss franc. It will be interesting to see if this 80 resistance level on the US Dollar Index creates turning points in the other currency markets. These are key levels for the currency markets, so pay close attention and manage risk accordingly. Good luck out there!


Click to enlarge
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Position in DX, MJY, and MSF futures.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
US Dollar Index Rallying Back Into Resistance -- Time to Add Shorts!
The Japanese yen still looks compelling, but the Swiss franc has started to break down.
Cody Tafel    

The US Dollar Index has rallied back above the 80 resistance level, and I'd look to establish short positions here with a tight stop. The 200-day moving average lies above around 80.55, so that should provide a good backstop to short against. It still looks like the US dollar could roll over back into the mid-70s, so the risk-reward on short positions at current levels makes sense to me (see the chart below).


Click to enlarge

The Japanese yen continues to percolate just below the 200-day moving average, and I think this consolidation phase is building up some power to break through and rally into quarter end. The US dollar failing at the 80 resistance level would obviously help give a bid to the yen, and I think long yen positions provide an attractive hedge if we enter another risk-off environment later this month.


Click to enlarge

The Swiss franc was acting well until recently, and it has started to violate support levels. It needs to find support right here, otherwise caution should be warranted, and a close below 1.125 would have me moving to the sidelines on the Swiss franc. It will be interesting to see if this 80 resistance level on the US Dollar Index creates turning points in the other currency markets. These are key levels for the currency markets, so pay close attention and manage risk accordingly. Good luck out there!


Click to enlarge
< Previous
  • 1
Next >
Position in DX, MJY, and MSF futures.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
More From Cody Tafel
Daily Recap
US Dollar Index Rallying Back Into Resistance -- Time to Add Shorts!
The Japanese yen still looks compelling, but the Swiss franc has started to break down.
Cody Tafel    

The US Dollar Index has rallied back above the 80 resistance level, and I'd look to establish short positions here with a tight stop. The 200-day moving average lies above around 80.55, so that should provide a good backstop to short against. It still looks like the US dollar could roll over back into the mid-70s, so the risk-reward on short positions at current levels makes sense to me (see the chart below).


Click to enlarge

The Japanese yen continues to percolate just below the 200-day moving average, and I think this consolidation phase is building up some power to break through and rally into quarter end. The US dollar failing at the 80 resistance level would obviously help give a bid to the yen, and I think long yen positions provide an attractive hedge if we enter another risk-off environment later this month.


Click to enlarge

The Swiss franc was acting well until recently, and it has started to violate support levels. It needs to find support right here, otherwise caution should be warranted, and a close below 1.125 would have me moving to the sidelines on the Swiss franc. It will be interesting to see if this 80 resistance level on the US Dollar Index creates turning points in the other currency markets. These are key levels for the currency markets, so pay close attention and manage risk accordingly. Good luck out there!


Click to enlarge
< Previous
  • 1
Next >
Position in DX, MJY, and MSF futures.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
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