Stomp On Bucky Day
The Dollar is really taking it on the chin this morning and this may be just the beginning as I see a good number of crosses push into possible short term trending action (bearish on USD base crosses, e.g. EUR/USD, and bullish on USD counter crosses, e.g. GBP/USD). Clearly the Fed is going to fight this, as a weaker Dollar is beneficial to appreciating equities.
The E-Mini futures are happily bubbling higher with the 25-day SMA and a Net-Line Sell Level at 2034.35 below it. We are getting close to breaching the next one at 2047.25 (which we lost last week) and that puts us into possible bear trap territory. Alas I don’t want to chase the eary hour tape higher thus I’ve placed an entry near 2046 in case market makers decide to throw one more monkey wrench into the today’s session.
CAD/CHF – also waiting for a drop on the CAD/CHF which is another possible trend candidate. Observe that touch of the 100-day SMA which was followed by a quick jump higher. Quite often you get a little drop to shake out some weak hands before it takes off gangbusters. In anticipation I’ve got a resting long order near 0.735.
A few more goodies below the fold:
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