Currency Markets

Currency Weekly January 3, 2022

Jan 3, 2022

Thomas Thornton

The theme in the last few weeks has been the slight drop in the US Dollar. The US Dollar bullish sentiment had been in the extreme zone and now has dropped to multi-month lows. Bitcoin is holding support in a tight range. Bitcoin did get a DeMark Sequential buy Countdown 13 however there are some issues causing me to pause on calling for a decent buy entry. Many other currencies have seen moves with new and pending DeMark Setup 9’s which could also be noted as potential pause or reversals this week.

Currency sentiment overview

US Dollar Index

DeMark Daily dripped lower

DeMark Weekly

Bloomberg Dollar Index Daily might be a better US dollar read with the buy Setup 9. A potential Sequential continuing the downside is possible and I will update in the next few days if that develops

US Dollar Sentiment with new recent lows

Commitment of Traders still shows large speculators set up long

Major USD Crosses

EURUSD Euro / US Dollar

DeMark Daily

Euro Sentiment showing some life

The commitment of Traders shows convergence with speculators and commercials

GBPUSD British Pound Sterling / US Dollar

DeMark Daily with sell Setup 9

British Pound Sentiment improving with series of higher lows

Commitment of Traders shows speculators positioned short with commercials long

AUDUSD Australian Dollar / US Dollar

DeMark Daily with sell Setup 9

Australian Dollar Sentiment nearing recent highs

The commitment of Traders shows speculators caught short with commercials positioned long

USDCAD US Dollar / Canadian Dollar

DeMark Daily

Canadian Dollar Sentiment could start to move higher however watch out for the Setup 9 might pause here

Commitment of Traders tightly wound

RISK On Risk Off

EURAUD Euro / Australian Dollar

DeMark Daily

Three major Yen crosses

EURJPY Euro / Japanese Yen

DeMark Daily

Yen Sentiment could stall here. Sorry about the price on this chart. We have several data sources that get loaded and one of them has caused errors. This is on our list for updates this month.

Commitment of Traders shows commercials positioned long and decreasing

GBPJPY British Pound Sterling / Japanese Yen

DeMark Daily with sell Setup 9

AUDJPY Australian Dollar / Japanese Yen

DeMark Daily will have a sell Setup 9 today

US Dollar vs Emerging Markets

USDTRY US Dollar / Turkish Lira

DeMark Daily

USDBRL US Dollar / Brazilian Real

DeMark Daily

Commitment of Traders tightly wound

USDMXN US Dollar / Mexican Peso

DeMark Daily

Mexican Peso Sentiment has topped at 70% all year

Commitment of Traders shows commercials selling with a slight lift with speculators positioning

USDZAR US Dollar / South African Rand

DeMark Daily

USDCNH US Dollar / Chinese Offshore Renminbi (Yuan)

DeMark Daily