The US Dollar ($USD) has dropped to a triple-bottom major support level of 92.00 and is attempting to stabilize, as shown on the following Daily chart. Fairly major resistance lies overhead at 94.00.
All three technical indicators are still in downtrend and the RSI is still below the 50 level, although the MACD and PMO have recently crossed over to the upside.
It is still trading under the bearish influence of a Death Cross moving average formation, so it's still extremely vulnerable to a break below 92.00 and a swift drop down to its next major support level of 84.00.
Such a drop could be very threatening for equities, inasmuch as further weakness in both of these could see investors incur fairly catastrophic financial losses. As such, we may see $USD buyers step in any time now.
I've recently described a scenario for a potential short-term bounce in equities here, and another scenario for potential longer-term equity weakness here.
What the US Dollar does in the near-term, as described above, may influence what happens in equities...another tool that can be monitored, in this regard.
The following Monthly chart shows other longer-term support levels.
At the moment, the Momentum indicator is making a new swing low, hinting at further (longer term) weakness ahead...so, keep an eye on the daily activity in the near-term and the 94.00 and 92.00 levels for any (sustained) breakout or breakdown.
Welcome and thank you for visiting!
The charts, graphs and comments in my Trading Blog represent my technical analysis and observations of a variety of world markets...
* Major World Market Indices * Futures Markets * U.S. Sectors and ETFs * Commodities * U.S. Bonds * Forex
* The content in my articles is time-sensitive. Each one shows the date and time (New York ET) that I publish them. By the time you read them, market conditions may be quite different than that which is described in my posts, and upon which my analyses are based at that time.
* My posts are also re-published by several other websites and I have no control as to when their editors do so, or for the accuracy in their editing and reproduction of my content.
* In answer to this often-asked question, please be advised that I do not post articles from other writers on my site.
* From time to time, I will add updated market information and charts to some of my articles, so it's worth checking back here occasionally for the latest analyses.
DISCLAIMER: All the information contained within my posts are my opinions only and none of it may be construed as financial or trading advice...
UPCOMING (MAJOR) U.S. ECONOMIC VENTS...
* Wed. May 22 @ 2:00 pm ET ~ FOMC Meeting Minutes
* Thurs. May 23 @ 3:30 am ET ~ German Flash Manufacturing PMI (watch for a hold below 50)...N.B. Jan. 24 PMI came in at 49.9, Feb. 21 PMI came in at 47.6, Mar. 22 came in at 44.7 & Apr. 18 came in at 44.5 (contraction mode deepens!)
* Wed. May 29 @ 2:00 pm ET ~ Beige Book Report
* Fri. June 7 @ 8:30 am ET ~ Employment Data
* Wed. June 12 @ 8:30 am ET ~ MoM & YoY CPI & Core CPI Data
* Fri. June 14 @ 8:30 am ET ~ Core Retail Sales & Retail Sales
* Wed. June 19 @ 2:00 pm ET ~ FOMC Announcement + FOMC Forecasts and @ 2:30 pm ET ~ Fed Chair Press Conference
*** Click here for link to Economic Calendars for all upcoming events
NOTABLE POSTS WITH IMPORTANT UPDATES...