There are two interesting discussions brewing on Currensee.com right now that started overnight as Europe woke up and looked at the numbers. First, Shaun noted that the USD and the DJIA have been locked together lately and those who buy bucks when stocks bear have done well:
The slavish correlation between the Dow and the Dollar remains unchecked and while the Buy on Dips (Bods) are being rewarded in stocks this looks to continue. However, when looking for clues to whether stocks are making a top and by default the Dollar a low, is to look at the Bond market. Both the 10 year Note and TBonds are in a classic triangle formation...
Meanwhile, Barak notes that his Value Area Low (VAL) calculation on the EUR/USD is at a critical point:
Just wanted to point out an interesting critical point to take into consideration. VAL=1.4535 calculation from two days ago (that is the “Value Area Low” of which 70% of market activity and transactions hangs on a previous day, the upper bound of this area was [VAH=1.4600], it’s a significant area the market tend to check on the move from one day to another)...
The discussion goes from there with lots of good info on the Value Area method and associated triggers, while folks following Shaun's chart are sticking with their stock market triggers.
Join the discussion and follow Barak and Shaun's trades on Currensee.com!
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