U.S. Dollar is hanging on to a “thin thread of support” this morning-

Posted by Chris Kimble on 12/02/2011 at 8:44 am; This entry is filed under Dollar Update.

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Shared a couple of days ago that the Dollar might be forming a "Bullish Cup & Handle" pattern and that it was testing support as it was creating the handle. (See post here)  

This morning the Dollar is hanging onto a thread of support at (2) in the above chart and creating a small bullish wick.  Dollar bulls need this support to hold, to keep the cup & handle pattern in play.

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5 Comments

  1. stemphos December 2nd, 2011 at 9:30 am

    It looks like the dollar might have heard you loud and clear because I swear that UUP went from negative 0.2% to positive 0.50% in a blink of an eye. Markets also cut 50% of its gains as well.

    Any reason why?

    Aaron

  2. Chris Kimble December 2nd, 2011 at 9:38 am

    Aaron…above my pay grade on the micro move you questioned. These charts, from start to finish take this ole man a while to create. Dollar was hitting support and I tried to get the chart out ASAP.

  3. InvestorX December 2nd, 2011 at 11:40 am

    UUP & TLT look to have a Cup & Handle, FXE the inverse

    Will the handle break the cup rim, in the fullness of time we shall see

  4. InvestorX December 5th, 2011 at 5:08 pm

    DAG long X2 Agriculture & AGA short X2 Agriculture have this same mirrored formation with lots of other goodies

    Agriculture knows something

    * leveraged ETNs

  5. Chris Kimble December 5th, 2011 at 8:54 pm

    I don’t believe in charting 2x ETF and making decisions based upon them. These ETF’s, due to their design have pricing issues and errors, which creates faulty charting errors.