ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The British pound has been on a fascinating and very bullish ride versus the U.S. dollar. On Thursday, the pound accentuated its action by perfectly tagging the lower part of its bullish channel directly above support at the 200-day moving average (DMA). (Click for larger view) Source: dailyfx.com charts (click for larger view) I redrew … Read more
Now THIS is the way to start a relief rally. The U.S. dollar index surged on Wednesday 1.84%, marking its largest one-day gain since a 2.72% gain on January 20, 2009. At that time, the dollar was in the middle of a sharp and major bounce off its 200-day moving average (DMA) support on its … Read more
The U.S. dollar rallied into the Federal Reserve’s latest decision on monetary policy. This move seemed to launch (finally) the start of a relief rally that I have tried to anticipate as the dollar approached its support at the 200-day moving average (DMA). The uncertainty over the outcome of the Fed decision encouraged me to … Read more
The recent descent in the U.S. dollar continues nearly unabated. Even as I pointed out the importance of the 200-day moving average (DMA) for the U.S. dollar, deep, deep down inside I felt the U.S. dollar would finally put up a fight at this key support level. The trends that have brought us to this … Read more
The rally in the British Pound may finally be on its last legs. I am sure the Bank of England hopes so as it meets to decide interest rates tomorrow. I wrote just last week about the potential for the pound to break out versus the U.S. dollar, and it has done so quite convincingly. … Read more