Here’s The Pattern I’m Watching
Bo Harvey
wrote today’s article in place of Dave.Â
The dollar index has finally
broken down after testing the upper portion of the weekly trend channel, as can
be seen below:
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The USD/CAD pair sold off after
tagging 1.4000 resistance, and now I’ll be stalking a potential long-term short
in this pair on any pullback, with a stop above 1.4200 resistance. The USD/JPY
also failed at key resistance at the 115.00 level.
The gold index (XAU) continued
to find follow through last week, but with many stocks in this group just under
their 200-day EMAs, I’d like to wait for a pullback and see the recent lows hold
(circa 74-78) before considering any new longs.Â
Finally, one pattern to watch
closely is the weekly S&P, which may be trying to form a bull flag. Keep a
close eye on this, as it could very well signal another leg up to the 1250
region if the S&P can break out of this pattern on higher volume.
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Have a great trading week,
Bo Harvey
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