In yesterday’s edition we reported that bonds, energy and gold were all compressed, meaning that pressure is building up for some fresh market moves in the immediate future. We can now add the US$ to that list as it compressed yesterday and (as I write) is trading slightly above the levels of that compression. It is too early in the day to pronounce an ‘upward break’ but it is worth paying close attention as the day progresses to see if the price can stay above yesterday’s high of 89.705 and thereby achieve that ‘break’:
If a US$ upmove is starting here there are implications for other markets, particularly such $ denominated commodities as grains, which would start to look expensive compared to those grown on other countries…
All signals courtesy of software supplied by our friends at Parallax Financial Research www.pfr.com
