US Dollar Rolls Down

The US Dollar ($USD) is one of the chart I look at regularly as a foreign investor, and this week saw USD give it up in a big way.

There are two trends in play here. The first is the trend of declining highs in price, with a support level around 100 to 101. The second is the rising trend of momentum on each low. Will the US Dollar bounce at the prior lows and turn the momentum back up near zero? Will the strength of the rising momentum on each low take precedent over the trend of lower highs and lower lows? This is an important chart globally, so the answers to these questions will prove vital.

The Canadian loonie ($CDW) is breaking out to the upside. Notice the bowtie cross of all the moving averages. This is typically a good sign for commodities.

One of the most important crosses in currency pairs is the Euro / US Dollar ($EURUSD). The Euro chart is almost the opposite of the US Dollar. Does this chart end up breaking out to the upside, or does it make a topping structure?

One other sign of a big global bull market is a move in the emerging market currencies, shown below with the chart of CEW. They broke out to one year highs this week.

I’ll be covering off ways to trade around these currency changes in the Osprey Strategic newsletter this weekend. You can check out everything we do from our Osprey Opportunities lists to the previous weekly videos and newsletters. Only $7 for a one-month trial!

Here is the link to this week’s Market Buzz. I had a different title – Is It Time For a Holiday? – but this one works too!

I recorded a video with one of Canada’s more widely known portfolio managers last week. Keith appears regularly on Canada’s Bloomberg News. Lots of big picture views. Valuetrend.