Last Monday morning I started a new series called “Monday Morning Movers“…attempting to find keys to what could have a large impact on the upcoming week. Last Monday morning it looked like the Dollar was signaling weakness, due to a rather large bearish wick at Fibonacci resistance the week before, which was suggesting that risk assets should do well. (see post here)
Per the chart below, it appears the currencies are being impacted again by Fibonacci, this time though it appears in the opposite direction.
CLICK ON CHART TO ENLARGE
The above chart was made pre-market this morning, so the day is long from over with and it could look a ton different 6 hours from now! At this time though the Dollar is back at its 23% Fibonacci support level and the Euro looks to be testing resistance at its 50% Fibonacci level.
Risk trade assets have done well over the past 10 business days and the currency situation right now is suggesting caution when it comes to owning risk assets in the short-term.