With the twin peak investments of US Treasuries and US equities seeing severe technical damage and the latest US scheduled data flow leaving more growth questions than evidence of forward progression, it is not surprising to see the Dollar trading lower.
This weekly feature examines chart formations, along with technical indicators, of two to three commodity markets. Breakouts of these formations may lead to trading recommendations published by the Trade Spotlight advisory service.
The Dollar continues to claw out minor gains overnight but today’s initial scheduled data flows aren’t expected to provide the Dollar with a distinct lift. In fact, the ISM Non-Manufacturing reading is expected to downtick and that could temper the Dollar’s four day rally effort.
With a number of longer-term moving averages signaling reversals in several currencies, fresh record highs in a number of global equity market measures and crude oil prices managing to hold $10 to $12 a barrel above their 2015 lows, global macroeconomic prospects are improving.
Without a positive industrial production result, the Dollar could see the beginning of a more significant corrective slide.
Critical pivot point support in the Dollar is seen today at the overnight low of 88.13 and with a rather active flow of scheduled data this morning, traders should brace for the most significant volatility of the week directly ahead.
From the overnight session, the aussie is up 15, the pound is up 24, the euro is up 74, the yen is down 4, the swiss is up 62, the dollar is down 39.
Today’s Pre-Dawn will be dedicated to trendlines and stochastics and I will highlight 4 markets worth a good look (with the charts attached).
The Dollar continues to hold a competitive advantage over most major currencies and remains a safe-haven destination of choice, so it may take an Initial Jobless Claims reading above the 300,000 level to take prices…
From the overnight session, the aussie is up 32, the pound is up 13, the Canadian is up 8, the yen is down 63, and the dollar is 4.