US Dollar Outlook - W3 October 2010


Time to buy dollars?

Here's a roundup technical analisys about dollar versus 7 major currecies.

On a daily basis seems that friday we've got a massive dollar short covering; well it's friday and we're at critical level also for usd index.

On a weekly basis seems that sell pressure on dollar is weakening.

So it's time to buy dollar?

Well, on a fundamental basis i think that those are good prices for entering long in USDJPY, UDSCAD and USDCHF.

Even AUDUSD seems double topping but shorts positions is not so cheap due to interest rates spread (same thing we can say about NZDUSD).

EUSUSD and GBPUSD are fighting with their psycological level (1,4 and 1,6) and situation is not so clear.

It's all about dollar.

You're fighting a heavy trend but a dollar rally could be near especially if algoritmic machines stops selling dollar and buy everything.

If you want to sell dollar into rallies be careful to choose the right price and use tight stops.

In my opinion sometimes flat is better...I left you the charts.

EURUSD

EURUSD, euro dollar, euro, dollar, cross eurodollar, EUR, USD

USDJPY

USDJPY, us dollar, yen, dollar yen, cross dollaryen, USD, JPY

GBPUSD

GBPUSD, great british pound, us dollar, pound dollar, cable, USD, GBP

AUDUSD

AUDUSD, australian dollar, dollar, australian dollar us dollar, aussie, aussie dollar, USD, AUD

NZDUSD

NZDUSD, new zealand dollar, dollar, kiwi dollar, kiwi, new zealand us dollar, USD, NZD

USDCAD

USDCAD, dollar, canadian dollar, us dollar, loonie, dollar loonie, cross dollar canadian dollar, USD, CAD

USDCHF

USDCHF, dollar, swiss franc, dollar swissy, dollar swiss franc, cross dollar swiss franc, USD, CHF