USD is down today, breaking below the daily SMA 200. But the reminder from the May 28th update:
While it will not officially be a breakdown unless it takes out the May 16 low of 104.08, it’s not a good look for our dear anti-market Uncle.
A very key point here at the 200 day moving average and uptrend channel bottom. Then support around 104.10 and the previous (April) low just below it. If the script of the last couple of years holds true, and if the buck breaks down, it’s party on Garth. If it holds and whipsaws upward, likely the opposite. Again, a very key point with USD not looking good right now. Pattern geeks may also note a potential H&S on the chart measuring to about 101.80. That would activate if 104.10 area support is taken out.
Today’s low is 104.12. No breakdown yet, and it is sitting on clear lateral support. Another point to be aware of is that breakdowns are not sure things. They can also whipsaw players down then up. But as of now it’s not looking good for USD. I am pretty much sitting on my hands until something solid happens (and maybe even after something solid happens). Being distracted away from the market, I am in no rush about much of anything right now.
