Dollar Showing Signs Of Life
The Dollar is increasingly showing signs of life, no doubt due to the slightly more bullish stance exhibited yesterday by the FOMC committee. As of this morning the DX has inched its way up to a 10-day high and is heading for its first weekly gain of 2018. Woohoo!
As you all know I’m not a fan of a weak Dollar for two reasons: First I don’t believe in artificial annual inflation of 2.x% as demanded by the Federal Reserve, and second I currently live in Europe whilst earning in Dollars. Every tick lower in the USD (and no play) makes the Mole a very dull boy. And we don’t want another fire axe incident, don’t we?!
And here’s our current double bottom in all its glory. Now make no mistake, this could still resolve to the downside after having sucked in a ton of Dollar bulls. But a breach of 90.5 would greatly weaken that proposition and once the 91 mark can be cleared we’ll have some very nice context below for potential entry opportunities. So let’s see what happens here over the next week or two.
Inverse situation of course in the EUR/USD. Here a drop < the bullish/bearish inflection point at 1.22 is expected to drive price lower to about 1.2 where I expect the Eurobulls set up a defense perimeter.
On the USD/JPY I would be interested in an exploratory long position once a retested spike low is in place. A bit more downside wouldn’t hurt either but I very much like the formation on the short term panel
Equities are increasingly losing their mojo and my E-Mini long campaign was taken out at ISL. I may try again near the 100-day SMA but let’s first see what today’s session brings. At this point realized volatility is expected to continue expressing itself via a sideways range. Entering here and now looks tempting but would be a gamble based on a hunch and not technical evidence.
In case you haven’t heard: BTC has dipped back below its $10k mark and that’ll be good for a early morning scare for all those U.S. based cryptobugs.
Crude is holding its own during the current Dollar advance but a quick dip lower overnight almost took my campaign out at its trail. One tick lower or so and my stop would have gotten filled, but thus far it looks like it’s back on track.
Another entry opportunity awaits – please meet me in the lair:
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