Looking at the USD index, we are rapidly approaching a level of demand. As long as we don’t see consolidation start to set in just above this demand, the odd’s of a reversal are fairly high if we plunge right into it.
Weekly Chart
Daily Chart With Weekly Levels Shown
UPDATE
Should this level fail we also have another potential reversal point just below it. Often times a level will be broken through unexpectedly and still hold. This is one of those potential cases.
UPDATE 2
Another case for the Bear. Dow futures appear to be a run away freight train into the above supply level.
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Great charts. I got shorts waiting a little higher.
I noticed some people getting short already. Too soon IMO.
Glad somebody is finally looking at currency around here….
I’ve been looking at currency for the last 8 years. 🙂
Hi fxtrader.I wrote a post similar to yours on friday http://ibankcoin.com/toreador/2011/10/28/the-financial-crisis-is-not-over-or-why/. We “r on different time frames but I have to say that I agree with you. The USD is facing strong supports in different time frames. I think like you that it’s still early to short USD , my guess is that the breakaway of USD/JPY would mean on yours and mine chart that we’r at the support, I’m waiting it carefully. The financial markets are a mess right now, I think the USD index and other ways to calculate the value of the $ are the best clue to know where we’r going.hat do u think about USD/JPY??
I haven’t been a fan of USDJPY in a long time. While it’s been in a long term down trend, luck would have it that i’d short it at the very bottom. For the weekly view, it’s not very volatile either, which is something I like. I’m waiting for a nice good level of demand to set in before i even think about touching it. I want to see solid proof of demand, considering the down trend in that pair. I think shorting it here is gambling. 🙂
Tore, I like your post. I’m not much of a fundamentals guy, but I like it. That SPX chart shows we’re headed into supply. The tell will be what happens when we get there. Demand forming just under supply = death of supply 9/10 times. Considering the strength of the bear move though, it’s almost in for a certain down turn. That forceful downturn is exactly what i look for in a potential short position. A forceful upturn into it with no level of consolidation just prior to reaching it is “money”.