A number of elementary analysts have steered 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 pattern rally from the April 21st low at 97.92 reached its terminus at 102 on Might 12th. This led me to attract a longer-term Customary Pitchfork (gold P1 by way of 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 way of P3). On Tuesday the Decrease Parallel (strong violet line) was violated, giving credence to my technical thesis that the counter pattern rally had reached a short-term high. That was additional confirmed when costs fell beneath assist at each the Kijun Plot (strong inexperienced line) and the Decrease Warning Line (violet dashed line) of the Schiff Modified Pitchfork right now. The shorter-term Stochastic Momentum Index rolled over by way of its sign line and it’s accelerating decrease. MACD didn’t enter constructive territory and is popping decrease. If costs fall beneath the violet P3 low on the 99.15 stage, the 97.95 stage within the USD Index will possible 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 out there on my web site…
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