Friday, November 21, 2014

US Dollar Index Tracks Higher and Higher

Where will it stop?


The US Dollar Index has been on a tear for many weeks and shows no sign of easing off the pace.  Some blame the Quantitative Easing and some blame the international central banks for this movement, no one really knows what to attribute it to.

The US Dollar Index reflects the interchange between the US Dollar and other currencies, a basket made up of Euro, Japanese Yen, Pound Sterling, Canadian Dollar, Swedish Krona, Swiss Franc.

The index is traded as a futures contract.

I have here a Point & Figure chart which shows that the future price target of $106.00, quite a distance to travel from today's level of $88.36.

Today it is at a level of resistance as you can see on the chart.




Recent developments in Japan and Europe have devalued their currencies and pushed the US Dollar higher.

Today China reduced their interest rates to boost a sluggish economy adding more to the upward move of the US Dollar.

The US Dollar Index will certainly be something to watch regarding any dollar related trading strategy.

I have some commentary below which you may find relevant  and interesting.


Speculators' US dollar net long highest since 2008 -CFTC, Reuters - Reuters

Fri, 21 Nov 2014 20:56:57 GMT
Speculators' US dollar net long highest since 2008 -CFTC, ReutersReutersNov 21 (Reuters) - Speculators increased their net long U.S. dollar position in the latest week to its largest in six years, data from the Commodity Futures Trading Commission sh ...

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The Long U.S. Dollar Trade Is Very Crowded - Wall Street Daily

Fri, 21 Nov 2014 10:06:28 GMT
After all, everyone seems to be long the U.S. dollar, which has been trouncing both the yen and euro over the past few months. But in reality, forex trading is one of the mos ...

Read more ...



How to Invest to Play a Stronger U.S. Dollar - Barron's

Fri, 21 Nov 2014 19:01:24 GMT
The GIC believes the U.S. dollar will probably strengthen further in 2015. While we are already overweight dollar assets, the tactical changes made today further increase this overweight pos ...

Read more ...



US Dollar Strength Shouldn't Undermine the Recovery - Institutional Investor

Fri, 21 Nov 2014 06:07:48 GMT
In 2010 policymakers roundly criticized Brazilian Finance Minister Guido Mantega for engaging in extreme rhetoric when he brought up the possibility of the ...


Read more ...


The next week will probably provide more volatility and great trade entries.

Good Trading.!!

2 comments:

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