US Dollar Breakout

By Colin Twiggs
April 30, 2009 2:00 a.m. ET (4:00 p:m AET)

These extracts from my trading diary are for educational purposes and should not be interpreted as investment or trading advice. Full terms and conditions can be found at Terms of Use.

Euro

The euro is strengthening against the greenback. Clear breakout above the declining trendline would indicate an another rally — with a target of $1.47. Reversal below support at $1.29 remains as likely, and would test primary support at $1.25.

Source: Netdania

US Dollar Index

The US Dollar Index broke out below a large rising wedge, warning of a primary down-swing with a target of 74, calculated as 84 - [88 - 78]. Failure of support at 82.50 would confirm, while reversal above the lower border would indicate a false signal — and test of the upper border.

Source: Netdania

Japanese Yen

The dollar rallied off support at ¥96, headed for a test of the declining trendline. Reversal below ¥96 would test primary support at ¥93.50, while breakout above the declining trendline would confirm the primary up-trend and offer a target of ¥110 (the August 2008 high).

Source: Netdania

Australian Dollar

The Aussie dollar is again testing resistance at $0.7300 against the greenback. Breakout would signal a primary up-trend with a target of the September high at $0.8500 — confirmed if retracement respects the new support level. Reversal below $0.7000 is now less likely, but would test primary support at $0.6300.

Source: Netdania

The more complicated the forms assumed by civilization, the more restricted the freedom of the individual must become.

~ Benito Mussolini

(A warning to us all about meekly accepting growing government complexity and interference in the free market)

Note to readers:
I will be taking a break next week. Newsletters will resume on Monday, May 11th. Regards, Colin