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Sunday, 22 February 2015

US Dollar: 22 February 2015, Sunday, 10.35am Singapore Time

US Dollar: 22 February 2015, Sunday, 10.35am Singapore Time
Chart courtesy of StockCharts.com


USD and USD Index will sell off towards 85.00-90.00 Cyclical Support band on the fact that every Tom, Dick and Harry knows that FED interest rates will be raised this year 2015. This will be yet another reverse logic move that sucks money from naive traders and naive investors who trade or invest on stale news.

US Dollar Supercycle Resistance (Very strong sell pressure):

1. Gold to have a large escape wave to $1550-$1600, Silver and Oil to have major dead cat bounces until gold hits $1550-$1600 and USD Index hits green support band at 85.00-90.00 as above;
Inter-Reference with Gold:
http://donovan-ang.blogspot.sg/2015/02/gold-gld-etf-18-february-2015-wednesday.html
http://donovan-ang.blogspot.sg/2015/02/gold-19-february-2015-thursday-830am.html

2. Commodities to execute escape wave rebounds;

 3. Stocks and equities to sell off.
Inter-Reference with Straits Times Index and MSCI Singapore as illustrative example:
http://donovan-ang.blogspot.sg/2015/02/msci-singapore-index-simsci-13-february.html
http://donovan-ang.blogspot.sg/2015/02/straits-times-index-22-february-2015.html

4. EUR, GBP, CHF, JPY, CAD, NZD and AUD to have dead cat bounce until USD Index hits 85.00-90.00 band as above on chart.
Inter-Reference with Euro analysis as illustrative example:
http://donovan-ang.blogspot.sg/2015/02/eurusd-3-february-2015-tuesday-941pm.html

*Euro Currency Note: 
Markets may price in Greece's 4-month negotiation extension with creditors as "will be successful" by having Euro going up first. This will wipe out Euro shorts that shorted on breakdowns in the market. If negotiation is indeed successful 4 months later, markets to sell Euro on news 4 months later; if negotiation fails, markets to sell and hammer Euro doubly hard 4 months later. 
What is assured? 4 months later --> Sell Euro (Euro shorts would had been wiped out)

5. The above executions (reverse psychology moves) will inflict majority of traders and investors with another round of losses.

6. Markets like to play reverse psychology so that everyone loses on logic thinking. Those who follow trends, you are often late on trend, by the time an obvious trend is formed and you can see the trend, so does the whole world. If the whole world can see a trend just like you do and wins money, then who loses if everyone wins? This is then the time you lose money like the whole world of traders and investors do. Because you saw a trend like everyone does.

7. Many "experts" are now coming out with stale trend charts of everything that had already been happened in the market commenting on how the trend will carry on. The reverse play is coming soon when self-proclaimed gurus are coming out to draw late trend charts and commenting like a pro on nice trends that seemed to be going to go on perpetually.



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