Seeking Alpha

Jeff Pierce's  Instablog

Jeff Pierce
Send Message
I’m a swing trader of momentum stocks with a holding period of anywhere from a few hours to a few months. I run a number of screens to locate the strongest/weakest stocks out there, using technical analysis to determine my entries and exits. Trying to calculate the intrinsic value of stocks in... More
My company:
tradewithZEN
My blog:
zentrader.ca
  • Dollar Could Pullback From These Levels 0 comments
    Mar 22, 2013 2:01 AM

    By Mike Ber

    The following is brought to you by ForexAlerts.ca who publish a premium daily newsletter outlining key support/resistance levels, premium twitter updates, and trading bias for 5 major currency pairs. Currently they are in pre-launch and are offering a 50% discount for those who subscribe now.

    Bias: Bullish-Neutral

    (click to enlarge)

    US Dollar Features - 1 Hour Chart

    Excerpt from our Weekend USD report:

    "Our bias is Bullish-Neutral on the US Dollar Features Index. The overall picture is bullish, but we expect the index to retreat before continuing higher. Dollar had a nice run, and there is no reason to believe that this run will end. We think a retreat to a 81.565-81.23 area is very likely, and will represent a very good buying opportunity. Eventually we are looking for the dollar to rally back up to the previous high - 83.42, and at that time we will be watching for a dollar to continue higher or form a double top and break down."

    Even though we expected a pullback to 81.565 area, the dollar reached 82.25 and bounced off this level. The dollar acted in a very bullish manner and buying pressure brought it to the previous highs around 83.355-83.42 area.

    Right now the dollar trades within a 82.22 - 83.17 range.

    Our bias is still Bullish-Neutral. We believe that the most bullish thing that dollar can do is to trade sideways, and consolidate its recent move. After that we expect the index to make new highs.

    Having said that, the rally might not be sustainable at this point. Indeed, the recent session shows some signs of weakness. It remains to be seen if we formed a double top here or not. Dollar couldn't make a new high today, even though it had a strong catalyst to do so - the unresolved situation in Cyprus with regards to bailout. Cyprus lawmakers overwhelmingly rejected the terms of the bailout proposed by the Eurozone, with non of the politicians voting in favor of the solution.

    Markets Expect Fast Resolution.

    Cyprus becomes the first country in Europe to defy the European authorities and Germans. All previous bailout attempts worked in the past as parliaments in Ireland, Portugal, Greece, Spain and Italy - all voted in favor of accepting tough austerity measures demanded by European Union and International Monetary Fund.

    The path that was chosen for Cyprus by ECB and Germany to resolve its financial difficulties couldn't be worse. It's a big mess now, and somebody will have to explain who came up with this idea in the first place. We can be certain though, that the situation will be resolved one way or another very soon.

    All the banks will remain closed across Cyprus until Thursday, and the authorities will have a hard time to keep them closed for a longer period of time. Cyprus may have no choice now, but to impose a levy. One way or another, if the levy is imposed or not, all the accounts will be drained because there is no trust in its banking sector.

Back To Jeff Pierce's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.