Russian ruble is another emerging market currency that has lost ground against the U.S. dollar. Over the past 9 months cross rate completed an inverted head and shoulder pattern with the neckline acting as resistance at 31.80 levels. Inverted head shoulder is regarded as a bullish reversal pattern. We are now seeing USD/RUB breaking above the resistance […]
U.S. dollar continues to gain strength against major emerging market currencies. In this update I’m analyzing the USD/ZAR (South African Rand). USD has been strong against the Rand since mid-2011. We are now seeing the uptrend accelerating towards the long-term resistance at 10.70 levels. Earlier tops in 2001 and in 2008 was marked with an upward spike. […]
Earlier in May I’ve updated two charts on the emerging market currencies USD/INR (Indian Rupee) and USD/TRY (Turkish Lira). Both suggested strong USD in the short/medium-term. We are seeing clear breakouts from consolidation ranges and weakness in major emerging market currencies.
U.S. jobless claims spiked higher in the May 11 week, up 32,000 reaching 360,000. Earlier analysis showed a long-term chart of the weekly jobless claims, reaching strong support levels. Over the past 4 years jobless claims moved from one extreme to another.
Many people must have seen the latest H&S chart pattern on the EUR/USD. If you haven’t seen it above is the price chart of the EUR/USD with its 200 day simple moving average. H&S patterns do fail. Reversal above the right shoulder (1.33 level) would result in a failed H&S pattern. If there is no […]
Another emerging market currency that is weakening against the U.S. dollar is Indian rupee. Recent update on the 7th of May drew attention to the possibility of a strong breakout from the low volatility period. USD/INR is now close to 55 levels; last minor resistance before the cross rate targets 56-58 area. Technical outlook is bullish for […]
U.S. dollar is gaining strength against most of the developed and emerging market currencies. I analyzed USD/TRY in the previous updates and drew attention to the bullish outlook on the dollar versus Turkish Lira. In mid-2011, cross rate broke above 1.75 levels and since then it has been consolidating between 1.75 and 1.90. Last year’s […]
Between 2009 and 2011, Sri Lanka’s COLOMBO ALL SHARE INDEX was one of the best performing equity markets. Since mid-2011 this market has lagged the global equities and its peers in the frontier markets. Now the index is completing a perfect chart formation; cup with handle. Cup with handle formation is considered to be a bullish continuation […]
In December 2012 we have seen Lumber price clearing the strong horizontal resistance at 330 levels. Breakout was followed by a sharp rise towards 400 levels in less than two months. Since March 2013, Lumber has been pulling back to the previously broken support/resistance area. Price should find support between 330 and 340 levels and rebound […]
Latest data on unemployment and jobless claims were welcomed by the financial media and helped equity markets gain momentum. Weekly jobless claims data is now at an important support. Will it reverse from here? We don’t know yet but if we see signs of reversal in the following weeks, resulting in worse than expected job numbers […]
