The US Dollar is one of the chart I look at regularly as a foreign investor.
This week saw the US Dollar give it up in a big way. There are two trends in play here. One is the trend of declining highs in price. There is a support level around 100 to 101.
The second trend is the rising trend of momentum on each low. Will the US Dollar bounce at the prior lows and turn the momentum back up near zero? This is an important chart globally, so will the strength of the rising momentum on each low, take precedent over the trend of lower highs and lower lows?
The Canadian loonie is breaking out to the upside. Notice the bowtie cross of all the moving averages. This is typically a good sign for commodities.
One of the most important crosses in currency pairs is the Euro / US Dollar. The Euro chart is almost the opposite of the US Dollar. Does this chart end up breaking out to the upside or does it make a topping structure?
One other sign of a big global bull market is a move in the emerging market currencies. They broke out to one year highs this week.
I’ll be covering off ways to trade around these currency changes in the Osprey Strategic newsletter this weekend. You can check out everything we do from our Osprey Opportunities lists to the previous weekly videos and newsletters and it is only $7 for the first months trial.
Here is the link to this week’s Market Buzz. The people at StockCharts didn’t like my title, so they changed it up!
Greg Schnell, CMT, MFTA