Wednesday, July 25, 2007

Big Rally In The Dollar

Today the dollar made a nice move to the upside. As you can see in the above chart the dollar has taken out the highs of the last seven days in just one day! I consider that significant especially when you look at the lower chart.

Below is a weekly chart of the U.S. Dollar and as you can see the dollar is forming a potential weekly bullish engulfment at a time that the dollar is very oversold.. I know it's only Wednesday and anything can happen from now until Friday's close, but if the dollar holds onto its gains, a weekly bullish engulfment will be formed.

I've been long both Gold and the Euro and I exited all of my long positions today at a profit. Today's move in the dollar could be the beginning of something and I am locking in my profits in Gold and the Euro while I have them.


gurlate said...

regarding forex, why does my broker website say that "forex trading is very risky etc etc"
i use interactive broker and i want to convert some of my dollar cash into euro cash..where is the risk in that i don't get it (at least it is as risky as holding dollars)

Kevin said...

It's called a disclaimer that all brokers have to make potential clients aware of by law...At the bottom of every financial blog including my own, you will find a disclaimer.

Trading in general is risky and you really need to know what you are doing because you can lose money.


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