The US$ index has had a great week and printed a large bullish weekly candle but has butted up against major resistance at 103.80. This will be the region to watch for any new make or break activity.
Risk-off continued last session and flows have accelerated into the US$; I’m reading the liquidity of the US$ is the reason here. The Aussie XJO is getting down close to a major support so watch for any technical pause or possible bounce here; especially after today’s 4pm RBA rate announcement.
The US$ is back flexing its muscle and stocks have recovered some of Monday’s losses. I had warned yesterday to watch for a pause with the selling and this is what we got! However, the Covid-19 situation is clearly going to get a lot worse for many countries and, whilst stock markets are forward looking, […]
Last week: Last week was shaped by extreme panic and, despite Friday’s strong stock recovery rally, I suspect there could be tough times and more selling ahead. I would expect the rising Covid-19 infection rate outside of China might dampen the type of enthusiasm seen on Friday and that it might take a plateauing of […]
There were large reversal moves on the FX Indices, and, whether this is just a bit of mean reversion or a shift to a new trend is not clear. These are unusual times and trying to apply the logic of technical analysis might prove to be a fools folly, but, I’ll give it a go!