Dollar Index Kickin’ Up Again…
By Jay Norris
The Greenback is in an attractive position at week’s end with it’s Monthly, Weekly and Daily trends all pointing higher. Being the world’s reserve currency and having safe haven status has it’s benefits from a bullish perspective for sure. The Greenback currently shares safe haven status with the Yen, though we’ll see how JPY holds up during the coming month, May, which seasonally generally starts a pretty tough time to be caught holding that currency.
Based on this flagging pattern on the daily chart it looks like we may still be in for a bit of choppiness over the coming week or two, but if it comes out of April still holding these price levels, the U.S. Dollar looks to be in continued good shape to gain ground against the other major currencies.
Fallout from U.S. regulatory and law enforcements efforts to clean up Wall Street’s bad habits have only solidified the Greenback’s status as a flight to quality currency.
Jay Norris is the author of Mastering the Currency Market, McGraw-Hill, 2009, and a principal in Trading-U.com
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