USD Strengthens - But How Far?
Good Morning,
Fundamentally, a pretty light week. Bernanke is on the docket, but it may not have anything to do with the markets/economic situation. Claims and durable goods on Thursday - durable goods have been....you guessed it....weak. Claims....weak. Watch out for earnings and the usual international news bombs.
Technically the SPX held its resistance at 1375. We had a move from 1325 to 1375 in about 6 trading days - that is only 3% in the face of terrible economic data. So did you protect your equity portfolio? How did you do it? Did you lighten up your long positions? Did you try to mitigate your long risk with short strategies using equities and options? Or did you take advantage of that wonderful USD/equity market relationship. As of this writing the EUR/USD (which is the weakest currency against the USD) is hitting new lows and just slightly above the 1.2000 level.
Where will equities go? Where will the USD go? Support levels in SPX are at 1325 and then a very critical level at 1308. Can you pick out resistance levels in the USD as it get stronger and possibly overbought if equities get oversold?
Join me Thursday for part 2 of "Using Trends to Create Trading Opportunities. This time, we add in Moving Averages. To see the previous "Trend" webinar, click here.
Happy Trading and Be Environmentally Cool
Coach Brian
Forex trading is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose.
