Finally after a long wait dollar
is showing momentum and appreciating against Euro, GBP and other major
currencies. In my previous post on currencies
written on June 10th 2014 I wrote the following,
“From the current levels of 80.75 DXY can hit 85
levels. Any further up move will depend on DXY breaking 85 – 86 levels.”
If we look at
the given chart of DXY we can see that it is breaking out of a long term
consolidation pattern and next target for DXY is around 85 – 86 levels.
Euro is
currently trading at 1.3320. I have given a sell call on Euro in Jan 2014 when it was trading at around
1.3658. I expect the down trend in Euro to continue and accelerate going
further. Target for Euro stays below 1.30 levels.
GBP also gave
away finally after months of sustained Bull Run. In my previous post on GBP, I
gave a sell with a stop loss of 1.7050. GBP made a high of 1.7116 before it
started this correction. Currently GBP is trading at around 1.6619 and I expect
this correction to continue.
Yen saw a spectacular
correction from 79 levels to 105 levels in matter of few months. Readers may remember
my sell call on yen given on 16thNovember 2012 which was
bang on target.
Yen had consolidated
for almost a year since that massive bear market and recently it broke out of
that consolidation. I expect the next wave of correction to start in Yen which
will target 108 – 115 level and beyond.
I am also
adding Swedish Kroner to this section. As you can see in the charts given below
Swedish Kroner has also broken out of a long term bull market and will continue
to see sustained deprecation against USD.
Summary:-
1.
Dollar bull market will continue with a target
of 85 - 86 for DXY.
2.
Euro, GBP, Yen, CAD and Kroner should continue
to depreciate against DXY
No comments:
Post a Comment