From the Desk of Ian Culley @IanCulley
Y’all know the drill…
Dollar down, stocks up.
That dominant inverse relationship remains firm as stocks rip and the dollar dips.
The market’s message is clear: Buy stocks, sell dollars.
If you trade the FX markets, I have two new setups to ride the falling dollar…
First up, the US dollar-Swiss franc pair USD/CHF:
I’ve been tracking a generational topping formation in the USD/CHF (bottoming formation in the Swiss franc futures) for most of this year.
It wanted to break down in July but lacked follow-through.
Today, the USD/CHF is printing fresh 8-year lows, flashing another sell signal.
I’m short the USD/CHF below .8575 with an initial objective of .8125.
Next, the US dollar-Swedish krona pair USD/SEK:
The USD/SEK is undercutting a shelf of former lows.
Meanwhile, the 14-day RSI is posting its third oversold reading since July. This is the definition of a bearish momentum regime, as the bears are in full control of this FX pair.
I like the USD/SEK short below 10.10, targeting 9.38.
That’s it for today: two fresh USD shorts.
You won’t hear much about these pairs in the headlines. But they’re both US Dollar Index $DXY components, and they’re both printing fresh lows.
That’s critical information for every investor.
Stay tuned.
Let me know what you think. I love hearing from you!
And be sure to download this week’s Currency Report!
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