Euro And Dollar Update
Euro And Dollar Update
The Dollar has been embracing the pain as of late and as we are now approaching critical support zones (again) this opens up possible medium to long term opportunities. Let’s review where we are:
On the DX the weekly panel shows us approaching the 100-week SMA where I would expect at least tentative support. Also worth observing is the monthly where the 25-month will soon meet up with the 100-month somewhere around 80.90. A drop through that level would most likely open up the floodgates. Note that the 100-week meets us almost exactly there as well – so unless ole’ bucky makes a stand there things may get very ugly.
And here’s the view from the EUR/USD side. The weekly is looking rather feisty but it’s the monthly which now puts us near the 100-month SMA. A push higher here could trigger a short squeeze, so keep an eye on 1.3443.
On the YM we got a little morning fake out after which it decided to paint a nasty drip-and-ramp or v-pattern. Another example of why I am keeping exposures very small on the equity side right now. Here I would follow the hourly as it’s our best guide – the daily setup on the YM still stands but obviously there is intra-day stop out risk.
You can play the same setup on the spoos as well.
Or you can take today’s GARB-L – which I mentioned yesterday I think. If we drop back down tomorrow then we do have an RTV-S at today’s lows with a stop at today’s highs. At least that’s something to go by – no matter what they throw at us in this low volume tape.
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Cheers,