• 657 days Will The ECB Continue To Hike Rates?
  • 658 days Forbes: Aramco Remains Largest Company In The Middle East
  • 659 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,059 days Could Crypto Overtake Traditional Investment?
  • 1,064 days Americans Still Quitting Jobs At Record Pace
  • 1,066 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,069 days Is The Dollar Too Strong?
  • 1,069 days Big Tech Disappoints Investors on Earnings Calls
  • 1,070 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,072 days China Is Quietly Trying To Distance Itself From Russia
  • 1,072 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,076 days Crypto Investors Won Big In 2021
  • 1,076 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,077 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,079 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,080 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,083 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,084 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,084 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,086 days Are NFTs About To Take Over Gaming?
Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

  1. Home
  2. Markets
  3. Other

Reversal Bottom Sets Up Potential Dollar Rally

The U.S. Dollar was able to mount a comeback after early session weakness. A lower than expected U.S. pending home sales report helped raise fears that the Fed would once again leave interest rates at historically low levels and fueled increased demand for the Dollar as a safe-haven investment. Oversold conditions also contributed to today's rally. Today's closing price reversal bottom indicates the start of a 2 - 3 day rally to 77.77 - 77.93.

The USD JPY fell sharply this morning following the release of the weaker housing report which showed the number of contracts to buy previously owned U.S. homes fell in November more than analysts had estimated. Today's close has this market in a position breakout to the bear side of an uptrending Gann angle at .9103. This would signal the start of a possible retracement to .8902.

The EUR USD weakened into the close as the Dollar picked up strength. The bigger picture suggests a move to 1.4680 is likely. Minor resistance at 1.4503 could slow down the current upside momentum. The weakening Euro is setting up for a pull-back to 1.4350 - 1.4319.

The main trend remains down in the GBP USD. Buyers tried, but failed to hold the British Pound in the retracement zone at 1.6036 to 1.5988. Concerns about the U.K. economy and the upcoming election are putting pressure on the Cable.

The USD CHF showed weakness overnight, but New York session buying helped form a closing price reversal bottom after an eleven day break. Based on the short-term range, watch for a retracement to .1.0379 to 1.0409. The bigger picture suggests that a break to 1.0212 - 1.0143 is possible following this short-term correction.

Rising gold and crude oil prices as well as a firm equity market helped to weaken the USD CAD. The main trend is down with 1.0265 the next downside objective. A key retracement level at 1.0459 is the new resistance. The weak close suggests that a possible rally to 1.0550 is in the works.

Strong demand for higher yields helped rally the AUD USD overnight. This morning's strength helped drive the Aussie over a key retracement zone at .9144 to .9066. The intra-day strength in the Dollar brought the Aussie back inside of this range and helped form a closing price reversal top. Traders should watch for the start of a 2 to 3 day break with a retracement to .8953 - .8902 likely.

The NZD USD is now in an uptrend, but finding resistance at a pair of down trending angles at .7353 and .7375. Closing back below these angles will indicate a profit-taking break is imminent. This could set up a substantial correction to .7180 - .7131.

 

Back to homepage

Leave a comment

Leave a comment