Howdy Folks,

(one more for now), the DXY is still looking like a beast.

Imagine that, the USA is having inflation woes of its own - even with the de facto reserve currency.

The DXY is at 20 year high, and could be heading higher - Yes, that means US Equities could have a problem, but in a way, a strong dollar will help "control" US Inflation a bit better.

(As Remo would say, DYOR)

Take Care you Kings and Queens out there!

Hi Libero! Nice to hear from the lazy eyed cat again!

this is a good spot....its made a higher low and rsi has been making higher lows for a while...
The only issue i think and as always wdik!....... is if the fed will allow the dollar to rise?

Anyway i think we have seen the lows here but this is only going to consolidate and move sideways for a while imvho..

atb, wdik, dyor,
trendfriend

Hey Folks,

I hope you're all keeping safe and well.

(off the grid for a while due to work and academic committments, but still keeping an odd eye out!)

The Dollar Index (DXY) & the US ten year bond has been my main focus (outside indicies) for a while), and something - perhaps interesting - is happening maybe?

Happy to hear your thoughts, but I wonder if it's breaking out?

(it's got to clear 93.5 and 94.3 perhaps, but you never know).

Keep safe folks, and I hope to spend more time at CV once again soon!

EDIT: The Weekly looks interesting too - with a fully formed W pattern (and the trend line drawn remains respected!)

This will then be positive for the precious metals etc...

Dollar strength may be ending?? Possible 123 high set up?? If the trend line gets broken then a dollar correction maybe in process.


dl.dropboxusercontent.com/u/4899609/usdollar29thapril2015.png

The dollar should have some strength now.

dl.dropboxusercontent.com/u/4899609/usdindex4thapril2014.png

Keep an eye out on the USD index...Its forming a 123 low..If it breaks out then usd trades will be bullish. worth keeping an eye on this.The down trendline is near the breakout level as well.



dl.dropboxusercontent.com/u/4899609/usdindex27thmarch2014.png

Possible 123 low breakout on the US Dollar Index.
This came at strong support as well.

dl.dropboxusercontent.com/u/4899609/usdollar9thoct.png

US Dollar Index is at the highest since 2011...so new high....so dollar strength...


dl.dropboxusercontent.com/u/4899609/usdollar9thjuly.png

If you look at the charts below you can see that this kissed the neckline perfectly today. Its still close to it so still in danger of a meltdown. If this level goes then the dollar will be sold off big time and head towards the main trend line. The ultimate target will be the low of may 2011. Thats the target if the head and shoulders breaksout

far away


close up

dl.dropbox.com/u/4899609/usdollarcloseup1stfeb.png

remo wrote:
The thing is Remo, the USD is bouncing back strongly today (following some good data, arguably leading vs lagging) - against GBP, AUD, and JPY.

Maybe a long is on the cards? Let's see if there's a sufficient bounce to create a bullish pattern!

p.s. My technical knowledge isn't all that, so I'm keen to understand if there's any significance to having a head 'n' shoulders combo inside a head 'n' shoulders combo. It looks uber-symmetrical, but beyond that I'm clueless as to where its heading - Central Banks have a lot to answer for

I was wrong....your chart is US DOLLAR Index. It was the fact that it was the weekly chart that threw me.And the time frame from nov 2011. It looked just like the daily version i have.
Theres an head and shoulder with in a head and shoulders. You dont see that often

Libero wrote:
Oooh! Here it is:

www.fx360.com/commentary/fawad/9476/doll...sh-ahead-of-nfp.aspx

Dollar basket is equivalent to Dollar Index surely? or have I missed something here

Man, you are too much of a perfectionist.

The time-lines are slightly out, but I think the first chart may have been "Compressed" to fit the website lay out (i.e. squeezed). This could create a neater effect I suppose.

Consider the candles vs date (in particular when you look at the LS-Head-RS), it matches!

Sorry mate
i just realised its the weekly chart. i was looking at it from the daily chart and november is the date i was getting confused with
sorry

Hi libero
This chart looks like the dollar index but the other chart does not. if you look closely on the dates it does not match up. I think its a different currency pair. ill see if i can find it.

Hi Remo,

it was a snap-shot from GFT, will find the source...

I've done a quick check (using a crude chart tool), and on the weekly, it looks like the $index - what do you reckon?

Hi libero
Your chart is not of the US Dollar index???
Out of curiosity whos that chart of as its a nice head and shoulders. I would look to short that chart if possible

Libero wrote:

I wonder if decent Non-Farm Payroll numbers would help ease the pressure on the Dollar Index...

I've always found this catch-22 situation somewhat odd. In theory, Good job numbers imply strengthening US Economy, thus a stronger dollar. Bad numbers indicate a market sell-off (and subsequently running to the USD for dollar); but, then there's the Fed!

(Sigh)

GFT Markets reckon its downhill from here!

(Chart courtesy of GFT Markets)

Another good reason to buy gold which is an anti-dollar play, and looks set to keep rising IMO.

Dollar's gonna tumble for sure ......

I always have a look at this index when trading against the dollar. This give you the overall picture of the US Dollar against all other currency.
Short term it looks like the dollar has broken a short term trend line which could mean its going to test the neck line on a head and shoulders pattern which is pretty big.
So if your betting on the dollar to be the stronger pair then be careful .





dyor