The Canadian Technician

Currencies Test The Trendlines


Today the Euro and the Swiss franc broke above the June highs, while the $USD tested down a little farther under the 2 year trendline. At the close of the US exchanges the Euro and Swissie had migrated back to the June high. But now both charts have set up a higher low and higher high pattern. The $USD index has not made a lower low yet. Obviously currencies trade through the night, so we'll see where they go from here.

$CDW 20130820

Now lets look again on the bigger scale. 5 year. We can see most of the charts are at major decision points on the big scale.

$CDW 20130820
The resolution of the Yen, the Euro, The Dollar, the Pound and the Swiss Franc are all in play.

Currently I don't like the way the foreign stock indexes are looking for the macro picture. The $FTSE England, the $DAX Germany , the $BSE India and the $SSEC Shanghai composite are all not confirming the US market breakout to new highs. France broke out above and has pulled back. Canada has been unable to break out too. This global stalling is not good. Currently the $NIKK has rolled over as well.  We discussed this at the Toronto SCU, but the next moves will be very important for the 4 year trend.

Good Trading,

Greg Schnell, CMT

Announcement from the Author

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Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at specializing in intermarket and commodities analysis. Based in Calgary, he is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the Market Technicians Association (MTA) and the International Federation of Technical Analysts (IFTA).

Greg is also the co-author of Stock Charts for Dummies (Wiley, 2018). Greg joined in 2012 and has be instrumental in helping launch a variety of new blogs and other commentary platforms. Presently, Greg contributes market analysis commentary to The Canadian Technician, Commodities Countdown and Don't Ignore This Chart blogs. Learn More
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