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.

Currency Market: US Dollar Index Has Blown Through the 200-Day Moving Average Support

By

The US dollar has accelerated lower and precious metals have been a clear beneficiary.

PrintPRINT
MINYANVILLE ORIGINAL The US Dollar Index has accelerated lower after breaking the 200-day moving average on September 7, and it seems from the recent Fed outlook that the trend lower should continue. Unfortunately, the market is proving my view of a longer term bull market in the US dollar to be incorrect. While this could be another shake-out, we must manage risk; therefore, I would use any bounces in the DX to reduce long US dollar exposure. The upside should remain limited above 80 as the 200-day moving average will now provide heavy resistance on any rallies above that level. Don't fight the Fed!


Click to enlarge

The euro has benefitted from the USD weakness, and has now broken through heavy resistance in the 1.25-1.30 range. Of course, this doesn't make a lot of fundamental sense, which is why the markets can be so hard to trade! It looks to me like the 200-day moving average will now provide support for the euro on any pullbacks below the 1.30 level. Longer term, I continue to think that the euro will trade lower, but this is not a time to fight the market, and we must manage risk.


Click to enlarge

< Previous
Positions in EUO.
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