steve.jarvis's picture

A fistful of Dollars still seems to be the way of the World

The US Dollar has not been any lower than 2nd place in our major currency ranking order for over 3 months and for much of this time has taken top spot.  After reaching extreme highs against many Currencies in early October, the possibility of a multi-week top pattern for a partial retracement of gains then emerged, but a lasting reversal pattern was never completed and one by one over the past couple of weeks the US Dollar has broken to yet new highs against most other leading Currencies.  This suggests that the next leg to a further period of broad US Dollar strength, lasting at least several weeks, is possibly now under way.

The bullish US Dollar trend is most pronounced against the Japanese Yen, Norwegian Krona, Canadian Dollar & Swedish Krona (see charts below), for which we see potential upside targets over coming weeks around JPY 119-124,  NOK 7.25-7.30, CAD 1.1850-1.22 & SEK 7.60-7.64.

Above charts (from left to right). USD/JPY, USD/NOK, USD/CAD & USD/SEK.  Click on each chart to see an enlarged chart (pop up)

The US Dollar has most recently broken to new highs against the Euro & Australian Dollar, but to only marginal new highs (so far) versus the British Pound & New Zealand Dollar.  These four Currencies are shown below.  Only against the Swiss Franc (not shown) has it so far failed to hit new highs, having stalled on Monday 1 pip under the 03 October peak at .9687.  However, in all cases, the trend remains up for the Greenback (down on these charts, as all four are inverted US Dollar rates) and it would appear to be only a matter of time being a full set of significant new highs has been made.  We have potential targets around 1.2110-1.2225 (EUR), 0.8350-0.8450 (AUD), 1.54-1.5550 (GBP) & 0.7350-0.7450 (NZD).        

Above charts (from left to right). EUR/USD, AUD/USD, GBP/USD & NZD/USD.  Click on each chart to see an enlarged chart (pop up)

A similar story exists elsewhere in the World.  For instance the US Dollar is at significant new highs versus many of the Asian regional Currencies, together with a number of Eastern European & LatAm Currencies.  Below we show USD/SGD, USD/THB, USD/ILS & USD/COP.

 

Above charts (from left to right). USD/SGD, USD/THB, USD/ILS & USD/COP.  Click on each chart to see an enlarged chart (pop up)