Sunday, June 21, 2009

Quick closeup shows dollar and gold testing support - euro and yen testing support and resistance

Chart views across a number of markets are posted at my UBTNB3 blogspot (see link at right) for anyone interested. Here are some quick closeups of just my charts for the dollar and gold, as well as euro and yen. Tyler Durden posted something Friday at his ZeroHedge blogspot calling attention to the dollar dropping steeply that afternoon - but as you can see, it really was testing its Bollinger Band midline support, and remains above trendline support too. Break that, and the dollar looks in more jeopardy, but for now it can be positioning for higher levels with confirmation from its indicators. (I marked a likely downtrending resistance line that the dollar will have to contend with, on a further rally.) Gold is also testing support, and its indicators look a lot weaker right now. The euro is testing resistance where I could easily have drawn a downtrend line from its recent peak, basically inverse of the dollar's chart. As for the yen, it's an interesting chart to speculate about - once again I'm left with the idea of trading in the direction it takes from recent consolidation. It moved up with market weakness recently, implying that if the markets drop then it may push higher (and I'm still thinking of my targets at much higher levels), but at that point the dollar may also be rallying so one must consider the dollar-yen pair effects. In its favor, its indicators do look good and it's working to stay above its uptrending 200-day moving average, even though its 50 dma already crossed under the 200 dma.

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