US Dollar Decision Time

04/18/2016

The USD is at a big level….the charts make this quite clear.  These DXY lines were first presented to in March 2015 (into the top).  Dips in 2015 held support, which is being tested again.  EURUSD is testing both horizontal resistance and a line that crosses through several important inflection points and the January 2015 gap.  Divergence between DXY and USDSEK is evident. I don’t have an interesting price chart for USDJPY but the most recent COT data indicates extreme positioning.  In fact, trend followers have never been this long JPY.  Hedgers have been short this amount of JPY just twice (highlighted on the chart).

US Dollar Index Weekly

DXY Weekly 4-18-2016

EURUSD Weekly

EURUSD Weekly 4-18-2016

USDSEK Weekly

USDSEK Weekly 4-18-2016

JPY Futures Weekly with COT Data

USDJPY Weekly 4-17-2016 COT

About The Author

Jamie Saettele
Jamie Saettele

Jamie specializes in swing trade setups. His 2008 book, Sentiment in the Forex Market, details trading and analysis techniques that he continues to use. More importantly, his trading style and education is a result of years of real trade experience both inside and outside FX. Contact: jsaettele@sbtradedesk.com Twitter: @JamieSaettele