FX Roundup

I am back.

29 Nov 10
FX

USD
The dollar is strong in every cross that I watch. It looks to me like we have a long ways to go before we hit any meaningful resistance to the dollar rally. USD/CAD would be the closest to resistance. The resistance lies around 1.02470. Going through that area would be very bullish for the dollar. We aren’t anywhere near being overbought on the dollar yet. Europe is crumbing. Stay long the dollar.

AUD
Confirming weakness all over the place. AUD/JPY cross looks like a double top and AUD/USD, AUD/CAD both have nice head and shoulder tops. RSI and MACD both confirm a bearish tone. The only AUD cross that is holding its own is the EUR/AUD. The EUR is obviously the weaker of two. I put on double the short lots with the AUD/CAD and AUD/USD. I just can’t ignore the head and shoulder tops.

GBP
Although not nearly as weak and the Euro still pretty weak against the two pairs I watch. GBP/USD has broken some support and continues to fall. I have 1 lot shorted here but would love to see a brief rally to get aggressive about selling more. The Yen pair looks a lot weaker moving forward as it tested resistance and failed to move above it at 123.2. Bottom line here is as long as Europe looks to be in trouble, and it will for along while yet, the Pound is going down.

EUR
There’s not a lot to say about the Euro other than to sell the crap out of it. There’s lots of broken support all over. The EU debt woes will bring the EUR down for quite a while. The Euro against any pair is in terrible shape.

JPY
The Yen is in decent shape except against the USD. The AUD/JPY is going lower off of a double top. The EUR/JPY broke pretty strong support at 111.9. GPB/JPY looks like it will now resume a downtrend after a month long correction higher. The only bearishness is with the USD/JPY and that pair really could use a correction before I would buy into the dollar against the USD. I have a light bullish position in the USD.JPY