Revenge Of The Greenback

Since Draghi and Carney effectively double slammed the Euro bulls last week, things have been looking up for the greenback. With equities across attempting to regain their footing the Euro longs have been squeezed into oblivion. As you may recall it’s been the Euro/Fed printing press ratio that in my mind has determined the direction of the EUR/USD and the DXY in general. Now that the Fed is talking QE taper and Draghi is talking open ended easing for some time to come, the Dollar bulls may finally get their summer in the sun.

My long term DX chart is looking rather spiffy and the 84 mark has been holding famously with the diagonal resistance line (now support) way behind us. So far so good!

On the long term panel however we’re looking at possible resistance as price is meeting the upper 100-week BB as well as the 25-week BB. On the monthly we have a breach of a NLBL at 83.66. Very positive – assuming of course we close July above it and we’ve got plenty of sessions to go.

This is yesterday’s P&F (I don’t know why stockcharts cannot get this one live for paying subs – sheesh) and we are now actually a few ticks away from breaching above 85. That would completely reverse the picture here as a double top break out would trigger a bullish price objective. Well, this is the setup and I want to be long here when that happens.

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