by Tiho Brkan, The Short Side of Long
Hedge funds are jumping back into US Dollar, while the priceĀ has made a lower high
Source:Ā Short Side Of Long
Yet another Non Farm Payrolls Friday and yet another interesting price development, where traders speculative future action of the FOMC. Looking at the action inĀ the US Dollar trend, the price of the index posted an outside reversal day on Friday. The powerful rally, which started in middle of 2014, has failed to make a higher high (so far) and has not traded below its 200 day moving average for over 12 months.
Moreover, hedge funds and other speculators have recentlyĀ jumped back into the Dollar, while to me its looking increasingly likely that the greenbacksĀ uptrend is about to experience a correction below the uptrend line. Of course opinions arenāt facts and none of these indicators necessarily guarantee a sell off. However,Ā speculatorsĀ have been given a signal (outside day reversal) and aĀ price level to place a stop loss at (above 98.50 on the index or below 1.0850 in the Euro).
Good luck speculating!
Dollar hasnāt fallen belowĀ 200 day MAĀ in 12 months, so watch for a mean reversion
Source:Ā Short Side Of Long
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