USD Bottomed out?

The way fund houses bought USD calls of next year gave me a clue that USD will bottom out soon, which I mentioned sometime before. So this the time to buy USD ? lets see what fundamental & technical says.

Yesterday USD spurted which was purely a short covering. Fundamentally a fact that positive job growth could spur the Fed to raise interest rates sooner then expected. They way commodities fell Friday also says that Dollar could rebound strong from here on.so what Technicals says for USD? lets see.


We will take weekly chart to analyse it. In the above chart USD finds some supp @ june 2008 high zone. where last two weeks it held. we had a Bullish engulf candle this week. Weekly MACD had a bullish crossover which is strong signal. Stochatics have +ve Div and closed above 20 zone for first time after this heavy fall. with all these bullish technical conditions we can conculde that it can retrace upto 40 MA weekly (79.84) nearly 80 zone where we need to watch will able to cross that or not. If USD takes this week high of 75.94 then it will be a selloff week in US markets and rest markets where dollar play major role. so track that.

Have a gr8 weekend !!!!!!!!!!!