A number of elementary analysts have prompt that decrease USD costs are within the playing cards. That argument can definitely be backed up with the technical proof on the Each day chart. The counter development rally from the April 21st low at 97.92 reached its terminus at 102 on Could 12th. This led me to attract a longer-term Customary Pitchfork (gold P1 by P3). The Higher Parallel (strong gold line) of that Pitchfork continued to cap any transfer increased and that was the genesis of shorter-term Schiff Modified Pitchfork (violet P1 by P3). On Tuesday the Decrease Parallel (strong violet line) was violated, giving credence to my technical thesis that the counter development rally had reached a short-term high. That was additional confirmed when costs fell beneath help at each the Kijun Plot (strong inexperienced line) and the Decrease Warning Line (violet dashed line) of the Schiff Modified Pitchfork right this moment. The shorter-term Stochastic Momentum Index rolled over by its sign line and it’s accelerating decrease. MACD did not enter constructive territory and is popping decrease. If costs fall beneath the violet P3 low on the 99.15 degree, the 97.95 degree within the USD Index will doubtless be challenged.
For readers who’re unfamiliar with the technical phrases or instruments referred to within the feedback on the technical situation of the SPX can avail themselves of a short tutorial titled, Instruments of Technical Evaluation and an in-depth complete lesson on Pitchforks is accessible on my web site…
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