Nexvu Capital

Nexvu on Economics, Politics and the Markets

  • Enter your email address to follow this blog and receive notifications of new posts by email.

    Join 1,022 other followers

  • Nexvu on Twitter

  • Previous Posts

US Dollar

Posted by nexvucapital on November 26, 2012

The US Dollar broke its up trend last week at an important level of resistance for a number of reasons if we look at the weekly chart.

USD Weekly Chart – November 24 2012

The point of resistance included the mid-point of the bollinger band (81.00) (http://en.wikipedia.org/wiki/Bollinger_Bands) and the January 2012 and 2011 previous highs as well as the 50 Day Moving Average (80.62). This turn also set up a potentially negative head-and-shoulders pattern on the chart which was put in place during 2012 (S, H, S). Any good news for the Euro or the Yen would continue this down turn with support at the 200 day moving average (79.63) and on the bottom bollinger band (78.20).

From a short-term fundamental perspective any resolution to the Fiscal Bluff would be a short-term negative on the flight-to-safety trade which supports the US Dollar. Positive news out of Europe would support the Euro and the move down in the Yen is looking tired. As stated on the weekend the commodity trade looks like it is setting back up for a run.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: