Posted Wednesday, January 21, 2015 11:40:50 PM
Group: Forum Members
Last Active: Tuesday, October 4, 2016 4:52:16 PM
As you can see in the graphic above, the uptrend only stalled for a moment to "rest while taking a breather" between 0.9649 and 1.0003. Now the Aussie dollar has been solved conclusively and resistance will likely be heading to the nearest target in 1.0357.
The u.s. dollar has been oversold or saturated are selling at the moment, as evidenced by the RSI on the daily chart are under 30. Then the dollar index also perched near the strong support in the last 3 years. So do not be surprised if the US dollar experienced a rebound from a sharp downturn, and thus restrain the strengthening of other major currencies for a while.
Let us look at the dollar index carefully in the days ahead. If the US dollar was able to strengthen to a limited extent, investors should BUY ON OVERRUN WEAKNESS, pound sterling, euro and Aussie dollar around 1.37-1.38-1.61 1.60, and the level of paritasnya.
In conjunction with the price appreciation of various commodities, stock exchange jumped every time the US dollar came under pressure. The reason for it is that market participants viewed the weak u.s. dollar as a sign the assertion that the QE2 will soon be launched.
Investors feel confident the Fed or central banks finance for non finance managers in the US will announce the next round of quantitative easing programme on 3 November. They argue the amount will range between US $ 100 billion and US $ 1.5 trillion. In other words finance for non finance managers, a big number. So logically is that additional monetary easing by the Fed is good news for stocks and commodities prices.
But ... now the question is how far the expectations of US monetary easing is anticipated? That's what often spoken lately among investors as well as speculators at once. Need to always keep in mind: the financial market mendiskonto the future, so the probability is indeed big enough that, when the QE2 into a reality, the u.s. dollar was ultimately successful in fact strengthened the U.S. stock market and plummeting!
Maybe you've heard the phrase "Buy on rumours, sell on news". I am somewhat concerned that everyone has bought rumornya, and now it's time to sell.
For example, after the u.s. dollar depreciating almost 7% in week 9 against the major currencies, is strong support within the last 3 years. Therefore, finance for non finance managers do not be surprised if the US dollar experienced a rebound from a sharp downturn, and thus restrain the strengthening US stock exchanges for a while (see chart below).