On the Commodities Countdown Webinar, I implied that there were lots of interesting currency setups currently and I would try to write an article about them this weekend. Here is the first article in that effort.
Currencies occasionally help to spot changes in market sentiment or weighting of international/domestic for equities traders. While the correlation of the $USD to the $SPX is hardly a reliable trade signal, the changes in trend can be timely with the equity markets on occasion. When they all look ripe for some signal, that can be important. If nothing else, be alert for potential trend changes when the currencies are changing their trends.
When currencies trade towards support and resistance levels, signals are given out depending on the result. Below, I've captured some of the important levels for the Dollar that are generating curiosity for me.
The US Dollar ($USD)
Back in January, we were discussing the $USD's inability to break through 100. The stock market had just been thru a significant month long decline to start the trading year. As the dollar stalled, and the trend lines started to snap, many of the commodities like oil, gold, silver, copper, and steel all made significant rallies.
Continue reading "Currencies Are Trying To Tell Us Something Part 1 of 3: The $USD" »