Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

US Dollar Index Is Turning Higher at Key Support and Should Not Break 82

By

The Aussie dollar is breaking support levels cited last week, and the euro should roll over.

PrintPRINT

The US Dollar Index has turned higher right where it should, and if the bull trend is to resume, then the DX should not break back below 82. I continue to like the risk reward of the DX at these levels, and now that we have some headline risk out of the way, the market should be able to resume moving higher. I would also keep a very close eye on the US bond market, as it looks like rates could be turning higher here. I think the DX could easily rally into the high 80s so the risk reward is very nice here.


Click to enlarge

The euro has failed right where it should on the recent rally, and now that the ECB rate decision is out of the way, I think we could see the euro roll over back below the 1.30 level. There is still a pretty clear head-and-shoulders top forming in this market, and with the downside target at 1.20, you can see why I love the risk reward of euro short positions here above 1.30. I have a hard time seeing the euro trade above 1.32 so you basically have the setup of a 10 to 1 reward to risk trade. Take that any day!


Click to enlarge

The Australian dollar short has also been working pretty well lately, and it has broken major support after the RBA decision to lower rates to historic levels. I have been watching this 1.02-1.06 range which has now broken to the downside, and that would project a target to 0.98. I would let this winner run, and add to Australian dollar short positions on any rally back above the 1.02 level. Good luck out there!


Click to enlarge

< Previous
  • 1
Next >
Positions in M6A & M6E 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.
PrintPRINT

Busy? Subscribe to our free newsletter!

Submit
 

WHAT'S POPULAR IN THE VILLE