While the Yen is surely “in the spotlight” today along with the Dollar, due to “bleedout” from the NFP as well as the Yen/Nikkei relationship gaining traction… the Unit showing the clearest signs of Dollar and “Low-Yielding” Strength has to be Cable.
As we can still see… and have appreciated for months now… The Weekly Bear Flag Formation is still intact… as Price sees Dynamic Resistance at the 50% Fib Variant of the July 2008 Highs at the 1.6820’s area.
The Daily View sees a clear Breach of the Dynamic Uptrend Line, as Price now looks towards the 1.6300 Handle, and if Depreciation continues… towards the 1.6000 Massive “Triple Zeros” psychological Magnet in the Mid-Term.
While in the Long-Term, Dollar Weakness may certainly still prevail… on this Time Cycle as well as the IntraDay View… Dollar Strength may continue with this Unit due to the literal “Reversal” of the BoE’s Quantitative Easing Policy.
A Clip and Hold below the 1.6500 Dynamic Support certainly keeps some “Weight” on Price moving forward, and only a new “Transitive Rollover” of Resistance-becoming-Support at the 1.6600 Handle will prove Bullish in Sentiment in the Immediate-to Near-Term.
Please join me again for more Updates as we move along!