Tuesday, 19 October 2010

DXY weekly trigger hit - more upside to come

As suspected by TMN the USD Index hit and exceeded last week's high today. Technically a stronger bounce in the USD should be under way and dips should get bought. 

                       Please click on chart to enlarge

GBP has been trading on the weak side versus the USD for a few days now, TMN has been surprised it even took that long to get this one going. Tomorrow we will have details on spending cuts by the UK government. TMN is of the opinion that there is a good chance that they will come in on the tamer side, which should be bad for GBP fundamentally, however a short term bounce can not be excluded at this point. In any case GBP remains a sell on rallies.

                Please click on chart to enlarge

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