Last Friday I did a duo chart on the U.S. Dollar, looking at daily and weekly action. It appeared that the Dollar was breaking short-term support and creating a bearish upside wick at its 38% Fibonacci resistance level. (see post here) Below is an update to the Dollar and Euro, looking to see if last weeks patterns are moving in the same direction this morning. (just like last Friday morning, this chart was done early in the morning!)
CLICK ON CHART TO ENLARGE
Dollar looks to have created a fairly large upside last week and early this morning is pushing below support. Failure at Fib 38%?
Last week I shared that the bond complex looked to be sending some bearish signals as TLT looked to be creating a “Double Top” (see TLT Twin Peaks) and some bonds were turning from “Hot to Cold” (see post here) . If history is a guide, a Dollar breakdown and Euro breakout, should put downside pressure on the bond complex.
So far today the key “Monday Morning Movers” are the currencies!!! Let them help you look down the road per helping you build portfolios as this currency move is a positive for the risk assets!