US Dollar Bulls Stirring, But Not Yet Wide Awake
17 December 2009
The FX Trader's view -
|
MONTHLY CHART: The main sign in 2008 that long term bears were losing momentum was the breach of the bear channel top projection.
Subsequent resistance was found from the 38.2% recovery level.
The 76.4% pullback level is so far having a supportive influence (note this has worked well in EUR/USD too - see last week').
|
DAILY CHART:
In the FX Specialist Guide we have repeatedly stated that it is possible we have been seeing a third/final downleg (from 81.466 08-Jun high) in the move that commenced from the 89.624 Mar high.
The recent violation of the bear channel top is encouraging for early bulls, while a close above the 76.817 03-Nov high now provides an initial bull signal.
Recovery through prior 77.428/77.688 lows (with current 23.6% level just above) would provide next confirmation of a temporary Dollar recovery underway, and we could next target the 80.000 38.2% recovery area.
S/term dips would be viewed as temporary.
|
|
|
Philip Allwright
Mark Sturdy
Seven Days Ahead
Receive three Market Updates fully-illustrated with charts each week for 90 days FREE
Next story:
Pullback in Gold Looks Set to Continue 
Previous story:
The politics of the Pound v the Dollar and the Euro
< Back to menu