Tuesday, February 2, 2010

Currency Update: 2.2.09

** The trend is similar across most major pairs so I won't bother replicating charts for now.


I'm starting to see dollar strength longer term out. After we experience this current correction (weak dollar) across the major pairs (EUR, AUS, JPY, GBP, and CAD); its highly possible the dollar will resume its upward trend.

The Central Bank of Australia's decision reflects this technical trend, how ever has even greater implications on the fundamental macroeconomic picture.

In addition, it seems to me that the EUR is leading the dollar trend... Though I will have to review more charts to confirm this.

In addition, at this point it is very crucial to also analyze commodity fundamentals and their respective correlations to the dollar.

Unfortunately, all this news means that for the past month I have been completely wrong on the EUR. I am waiting for the best opportunity to correct my position, which will be coming soon enough.

I will have more in depth analysis posted later...


Alexander LĂȘ
Managing Partner
Analyze Capital LLC

1 comment:

  1. Great analysis. When you get a chance, I'd like to read your thoughts on the Dollar/Yen technicals. Some of what we touched on last night.


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