- WE'RE JUST RANDOM SPECKS OF DUST IN A TORNADO TO THE MARKETS .......
- CHARTISTS MUST PUT ALL BIAS ASIDE AND LET THE CHARTS DO THE TALKING OR WE'LL SEE ONLY WHAT WE WANT TO SEE
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Monday, 6 December 2010

Has USD Peaked?

I was surprised to see EURUSD break declining resistance on Friday afternoon. That was very bad news for dollar bulls and could well signal that the recent run up in USD has peaked. That in turn would look very bullish for equities. :

I was also surprised to see Vix hit support on the broadening formation on the 60min chart:


In terms of the Vix support hit that either means that we will see some equities retracement here, or that the pattern is about to break down which would be very bullsh for equities. I'm leaning towards a retracement.

If we do see some retracement I have candidate rising channels on ES & NQ with downside targets that would fit with today's S2 pivot support levels. If so then the ES retracement would bottom out in the 1207 area:


The NQ channel would target S2 pivot support in the 2156 area:


I won't be around much today. I've had a nasty cold all weekend and am still suffering the aftereffects today.

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