Major Currency Pairs Split Reversal Is Ahead

Includes: GLD, OIL, UDN, USO, UUP
by: The LFB

We await the open of the Asian markets, and look forward to whether the bullish moves in oil, gold, and equity trade can allow the major pairs to hold steady against the Usd. Who knows, we may even have enough momentum to this week break the eleven week channel that the major pairs are at the top of.

Take care on the first session of the week, the major pair trend and momentum reads are all over the place, there is no pattern across the dollar index components at all. They split on Friday, and went their own ways in regard to break-outs and reversals, and that may take a session to put right.

That situation will not be aided by the global dollar index drivers (equities, oil, and gold) are all overbought. A long-Usd play may have to be seen before things can move too far on the long side of those markets.

We will update the signal area once the Asian market is underway, but say once again, this is not a clear dollar index picture at all, and the global markets may need to test support before getting aligned to sell the Usd.

Disclosure: No Positions