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Coiling Currencies
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Coiling Currencies

Coiling Currencies

by The MoleOctober 6, 2016

In the end it’s all about the money and more specifically what happens on the currency side. Although Forex trading has effectively been turned into a small sideshow in the United States, due to stringent Dodd Frank regulation that mainly affected retail traders, it would be a mistake to not pay attention to what’s happening on the currency side. And what I’m seeing across the board, on a long term basis, is rather disconcerting.

2016-10-06_eurusd_lt

Frankly the overall theme does not require much explanation and I will let the charts do the talking. Here’s the EUR/USD which is probably the most salient representation of what’s going on here. This thing is so tightly wound that I’m afraid it’ll snap any moment.

2016-10-06_usdjpy

The USD/JPY may actually be the first one to go as it just breached upside resistance and is nibbling on a weekly NLBL. Maybe it’s pointing the way?

2016-10-06_usdcad

USD/CAD looking rather bullish but also coiling up, most likely awaiting the November election.

But wait, there’s more…

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Bottom Line:

It’s entirely possible that the smart play here is being long the USD. It’s the least smelling fish in the barrel and if it all comes crashing down – what’s the alternative? The Euro? The Renmimbi? The fickle Swiss Franc or worse, the Yen with those kamikaze pilots at the helm? Cash is a position, especially if it involves the U.S. Dollar.

100_dollar_treasury_note

Maybe I’ll even live long enough to see one of those again.

About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at the usual social media waterholes.
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