Wednesday, June 13, 2007
The U.S. Dollar has been in a downtrend since the beginning of the year and is now staging a rally. In my opinion this is a pullback to short. Notice how the dollar is approaching its trendline.
In the lower pane is the stochastic oscillator. Whenever this oscillator gets to the overbought area the dollar tops out. You can see how effective the stochastics have been in identifying shorting opportunities.
We're not getting a sell signal right now, but we may get one in the days to come so keep an eye on the dollar for any signs of weakness as it approaches its trendline.