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by Ashraf Laidi
Posted: Feb 22, 2010 5:00
Comments: 2338
Forum Topic:

USD

Discuss USD
 
Stationdealer
London, UK
Posts: 715
14 years ago
May 20, 2010 19:42
Hot Dollar Cold Sweat!

NEW YORK (Dow Jones)--One way or another, the Dollar Index's number is coming up, and the upshot could be downright theatrical. Either the dollar is going to be wildly bullish or bearish.

You've heard of market "fear indexes." I'm suggesting that the dollar is about to become one of those indexes if it isn't already.

If I'm not misunderstanding the current situation, the dollar's uptrend is influenced by what I call the "Roman Empire effect," that is, the haven-seeking dollar buying on the assumption that the U.S. is the last, best circle of economic security, much as Roman citizenship and Roman currency were respected in another point of history.

I should say to readers, especially readers outside the U.S., who sense a chauvinism in that analogy, that, after all, we all know what happened to the Roman Empire. But I digress.

The technical point, in any case, is made by the daily chart of the last leg of the Dollar Index's current uptrend which shows what is up with the dollar. See chart at
http://www.dowjoneswebservices.com/chart/view/4007

The looming technical resistance at 87.806, I'd say, is liable to make or break the dollar's uptrend. If the Dollar Index blows through 87.806 then traders could seriously consider an eventual move up to 95.000-area technical targets before this year is out. On the other hand, a failed test of 87.806 would be a strong caution signal to those planning to buy the dollar for any reason. See chart at
http://www.dowjoneswebservices.com/chart/view/4008

That 87.806 level is derived from the Dollar Index's annual chart. It may be important to note that the Dollar Index's current powerful uptrend this year is so far a correction of a downtrend that has been effective since the index peaked in 1985 at 164.720. The simplest technical logic says that the 25-year downtrend trumps the current half-year uptrend. Or, to put that thought in other words, a decisive move above 87.806 would be a momentous technical development.

Going back to the short-term technicals, I believe a test of 88.229 followed by a decisive move below 87.806 would be a strong signal of a Dollar Index failure. On the other hand, trading even slightly above 88.229 would have to be notice that buyers of the dollar are playing in this market strictly at their own risk.

Stationdealer
UK
Posted Anonymously
14 years ago
May 20, 2010 13:44
Jobless Claims Up 25K To 471K

There you go US job start to falter as i said couple of weeks ago that i dint believe the employment number coming out of US. Allot of traders today were waiting for these numbers are not left deteriorated thinking that a lower number is what would start euro sell-off and stop equities from falling.

We will be looking out for further weakness in the jobs market
ross
Hawaii, United States
Posts: 37
14 years ago
May 18, 2010 23:30
89.66 next usdx target this week? 91 next week? Then what?!!!

From Jim Sinclair:
"The euro below $1.20 would strongly suggest Chairman Volcker is right on the subject.

The euro below $1.10 would confirm that Volcker is correct.

Presently there is key support at $1.2150.

The euro today traded as high as 1.2448 and dropped below $1.2150 trading now at $1.2202. That is outrageous activity for a major currency

There is no central bank nor is there any intervention that can stand against the tool of credit default derivative swaps. Gold is you're only safe harbor."

I hope everyone has guns and some land to grow some food on!!!
rim
Turkey
Posts: 121
14 years ago
May 18, 2010 21:06
Dear Ashraf ,

On Shanghai Comp index and commodiies relation no chart analysis ?
aymankhlifat
Jordan
Posted Anonymously
14 years ago
May 18, 2010 12:43
my brother ASHRAF
very big thank for you..because your perfect comment ..i reached to +710 pips these two months
great great from you
thanks soo much
ayman
Stationdealer
London, UK
Posts: 715
14 years ago
May 13, 2010 21:48
Believe what you want, but I refuse to believe a recovery is in progress when federal income tax collections are off $65 billion dollars, and state after state is still showing declining revenue.

It should be perfectly obvious neither housing nor the recovery can stand on its own two feet without round after round of stimulus measures. April marked a record 19th straight monthly shortfall, highlighting the challenges facing the Obama administration. Corporate tax receipts totaled $77.1 billion for the year to date, an increase of 8.9 percent. However, please remember corporate profits reflect profits, not wages paid to employees. More importantly, individual income tax collections were down 11.6 percent so far this fiscal year to $500.8 billion.
Stationdealer
London, UK
Posts: 715
14 years ago
May 13, 2010 10:24
Dollar Index early signs of a double top formation around 8540
Stationdealer
London, UK
Posts: 715
14 years ago
May 11, 2010 12:41
WASHINGTON (Dow Jones)--Countries like China would benefit from a stronger currency because higher consumer spending would have to make up for lower exports, a top U.S. Federal Reserve official signaled Tuesday.

Although he didn't mention China by name, outgoing Fed Vice Chairman Donald Kohn said in prepared remarks to a conference in Zurich that "countries that have become accustomed to running large current account surpluses" would benefit from "more flexible exchange rates."

"These measures will be undertaken because they are in the best interests of the countries themselves," said Kohn, who will step down from the Fed in June.

"More flexible exchange rates also provide domestic policymakers greater scope to focus on domestic goals of full employment and price stability," he added.

Officials in the U.S. and other major world countries have recently opted for diplomatically polite language to nudge China toward a revaluation of the yuan. Since Chinese officials have repeatedly said they won't bow to foreign pressure to revalue the yuan, analysts believe subtle expressions of concern are likely to prove more fruitful than tough talk of sanctions against Beijing.

Kohn noted how savings in China have been outpacing investments because people there have weaker social safety nets and a less-developed financial sector.

While countries like China should be less dependent on exports and more on consumer spending for growth, the U.S. economy should rely less on its consumers, Kohn said. He added the U.S. should boost incentives so its citizens will save more.

"The U.S. economy will need to be less driven by consumption and housing and will need to rely less on debt to finance spending on consumption and housing," Kohn said, adding exports and capital investment will need to play a larger role in the U.S. economy.


-By Luca Di Leo, Dow Jones Newswires; 202 862 6682; luca.dileo@dowjones.com
Stationdealer
London, UK
Posts: 715
14 years ago
May 10, 2010 10:38
The June Dollar closed lower due to profit taking on Friday as it consolidated some of this month's rally. The low-range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI remain neutral to bullish signaling that sideways to higher prices are possible near-term. If June extends this month's rally, weekly resistance crossing at 85.85 is the next upside target. Closes below the 20-day moving average crossing at 82.01 are needed to confirm that a short-term top has been posted. First resistance is Thursday's high crossing at 85.46. Second resistance is weekly resistance crossing at 85.85. First support is the 10-day moving average crossing at 83.04. Second support is the 20-day moving average crossing at 82.01.
Ashraf Laidi
London, UK
Posts: 0
14 years ago
May 2, 2010 23:55
rim, generally, USD began to increase few months before tightening cycle took place. Once it did take place, USD strengthened invariably. It also depends what the OTHER central banks do, so there is no uniform pattern. WIll need to post chart.

Ashraf