The dollar continues it's march higher and is currently resting at resistance. It is however now the fourth time the dollar index tested the most immediate resistance area and as such the chances of a break higher are increasing.
it's almost uncanny, check out this inverse correlation of the dollar index bs the s&p 500 on a 10 day 60 minute chart:
We awake this morning with the euro down 0.50 % vs the greenback and some 'interesting' news, In Finland the 'anti'euro' party won a crucial stake in the parliament, which could mean the Portugal bail-out plans by the euro union will stall. Moody's not to be out-done downgrades all Irish-Government garanteed banks to Baa1, […]
The intraday correlation between the EUR/USD pair and the SPX remains to be uncanny. More often than not the EUR/USD leads the way in either direction, allowing me to take a clue and trade in the said direction.
The dollar rallied further yesterday, bringing the EUR/USD back down to a multi-year trend line. In early April the dollar pierced through a downward sloping trend line near 1.42 at the time and now is retesting these levels. While this could provide some sort of support, our take is that the dollar's strength here, partially […]
Note the quick and steep rally the EUR has staged against the USD over the past three weeks. 1.385 could have served as resistance but the EUR kept rising and is now at 1.40, which should serve as some sort of resistance. Next stop higher would be 1.428, which is the highs from last November. […]
I know I know, a 1% up-move in the dollar index and people are getting all dollar bullish again. Our job here is to look for clues and remain impartial and vigilant as we meander through this jungle calle the market. One of the clues I tend to look for are key reversal signals using […]