CY 2016, so far, has been very bad for Dollar and very strong for Japanese Yen, Gold and Commodities. But it this about to reverse? The charts do indicate - YES. I tweeted it yesterday
It's time to turn Bullish on Dollar...
Dollar Index at 92
It will be interesting to watch where it closes today
— Deepak Singh (@smarket) May 3, 2016
Dollar Index did not surprise...it sold off and then made a big comeback - forming a doji near 100 week moving average. Remember the week is still not over
USD index made a strong bull market move in 2014 and since last 12 months - the index has been in sideways consolidation mode with strong support at 93. What market has done this week - reaffirmed that support. It might attract buying. What's fascinating: USDJPY chart also at support level and this will only reinforce that Dollar sell off is done for now
Here's USDJPY (USD Japanese Yen) Chart:
Japanese Yen has rallied enormously since June 2015. Remember, its USDJPY chart - so a downtrending move means strength in Yen. USDJPY was trading at 126 in June 2015 and now it has corrected to 106 - levels close to 200 week ma. Considering USDJPY is an uptrending chart - the 200 week ma technically should act as strong strong support and USD might rally from here. I did mention about it couple of days back.
The 200 week moving average on USDJPY is at 105.
Right now Yen is trading at 106.44 pic.twitter.com/mQYoBQFrUh
— Deepak Singh (@smarket) May 2, 2016
What does this all mean?
The sell off in Dollar is done. What needs to be seen: Will just Dollar hold on to the support levels or make a strong comeback?
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers