The longer term picture for Japanese Yen and US
dollar are quite bullish. You hopefully noticed that the most recent strength
in US dollar index was basically due to the fact that Yen was weak. You could
actually see dollar weakening in most pairs and strengthening on the Yen and
dollar index strengthening at the same time. This has been changing lately. You
can see how dollar weakened this weak across most currency pairs, not
necessarily Yen, and dollar index collapsed. Anyway, we have very rich week
upcoming. Major economies will announce their interest rates decision: US,
Europe and UK. I do hope to see some ‘fireworks’.
On the one hand aud/usd and nzd/usd displaying clear
technical bullish patterns. On the other US dollar index is close to its’
support. What does that mean? Being a technician I am ready to go either way.
Commodity currencies look bullish against most other currency pairs too: Euro,
British Pound and Swiss Franc. I am thinking about going long in aud/usd and
shorting gbp/aud, gbp/nzd as well as eur/nzd and eur/aud. It looks like major
time for correction in these pairs has come. And the timing for that seems to
strike next week. Get ready and do your own analysis over the weekend.
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