U.S. Dollar bears weighs in

Traders are optimistic of the Euro as Greece talks with IMF continues. In the event of a forced exit from the European Union, the Euro will most likely remain with the strength of the remaining countries. Just a quick couple of notes for a bearish U.S. Dollar.

First sign of a bearish week ahead as the daily produced a longer upper tail signaling the failure to push price higher. Currently we are observing how the USDCAD pair tests the downwards channel.

USDCAD Daily
USDCAD Daily

USDJPY is temporarily making a pull back from new highs. The support turned resistance level is holding right now. I have entered a short position just for the move down to the trendline where I expect this pair to find support.

USDJPY 15-Minute
USDJPY 15-Minute

 

Keep in mind that the U.S. Dollar is still fundamentally stronger. I would treat this current condition as another round of closing out positions for buyers who have taken the long position.

The short term bearish stance comes as the jobless claims earlier this week did not fair too well with traders. Instead of the anticipated fall to 271K, it rose to 282K. Next week will be crucial with the Non-Farm Payroll release coming out.

Advertisements

A Pip For Your Thought?

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s