ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The U.S. dollar index has made little progress since its tremendous one-day rally over two weeks ago. Over the past week, the dollar index has stalled out right at its 50-day moving average (DMA). [Click for larger view] *Chart created using TeleChart: I set my plan at this point to dial my positions to net … Read more
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