I know I covered the U.S. Dollar last week, but what I saw in the most recent COT Traders in Financial Futures report was too important not to cover.
Last week the December U.S. Dollar Index opened at 78.960 and closed at 79.398. Last weekend we saw negative news from Europe over their ongoing debt crisis, and this past weekend we saw more negative news as we saw a fresh crisis stalemate between Germany’s Merkel and France’s Hollande, with the biggest critic of bank oversight coming from the German Finance Minister Schauble. We will see added strength in the USD coming from this disagreement.
Looking at the daily chart below, you can see how from last week ADX went from 52.6 to 36.2 this week, reflecting a weakening trend (down). DI Diff is now at 4.94 with DI+ crossing up over DI- today. Last week DI Diff was at 33.75 with DI- well above DI+. MACD has dropped all divergence from below the signal line this past week and is now crossing up over the signal line. Stochastics are now correcting from oversold territory.
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