Today the Euro and the Swiss franc broke above the June highs, while the $USD tested down a little farther under the 2 year trendline. At the close of the US exchanges the Euro and Swissie had migrated back to the June high. But now both charts have set up a higher low and higher high pattern. The $USD index has not made a lower low yet. Obviously currencies trade through the night, so we'll see where they go from here.
Now lets look again on the bigger scale. 5 year. We can see most of the charts are at major decision points on the big scale.
The resolution of the Yen, the Euro, The Dollar, the Pound and the Swiss Franc are all in play.
Currently I don't like the way the foreign stock indexes are looking for the macro picture. The $FTSE England, the $DAX Germany , the $BSE India and the $SSEC Shanghai composite are all not confirming the US market breakout to new highs. France broke out above and has pulled back. Canada has been unable to break out too. This global stalling is not good. Currently the $NIKK has rolled over as well. We discussed this at the Toronto SCU, but the next moves will be very important for the 4 year trend.
Good Trading,
Greg Schnell, CMT
