USD Yields at Support?
A relatively quiet day fundamentally. Again, be aware of earnings, especially if you have short term option trades on. We have the 10 year auction later today as well as FOMC minutes. The minutes should talk about the weakness we have seen in economic data and should be "dated data", but always worth paying attention to.
Technically, I always like to use MACD's as a diverging indicator. Here, we have TBT, which tracks longer term yields. So, as it drops and hits a low in early June (baaad unemployment data released then), we had the MACD very low and volume at highs. Now, prices are back at the same lows, but volume is a lot lower and the MACD is a lot higher. Could this be a double bottom combined with a bullish divergence? Remember, the trend is down and the trend "is your friend", but it is always useful to understand the fundamentals (QE or no QE) and technicals that could change a trend:
Past performance is not indicative of future results
Notice that there aren't any forex charts. Unless trading picks up like it did yesterday afternoon, be careful trading in quiet markets. Even as a day trader, you don't have to trade every day.
For more information on using trends to build trading opportunities, join me tomorrow evening for the IBFX webinar.
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Market Analysis Archive
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