Currency Weekly August 14, 2022

Aug 14, 2022 | Currency Markets

Highlights and themes

  • The spike lower with the US dollar after the CPI has recovered more than half the decline.
  • The low on the DXY US Dollar from the CPI print index is the line in the sand.
  • Yen has a potentially bullish pattern developing.
  • Bitcoin has drifted higher with sentiment remaining under pressure
  • Ethereum has looked better. However, there are a couple of signals to watch

Currency Sentiment Overview

Currency sentiment highlights

US Dollar Indexes

DXY US Dollar Index daily dropped hard after the CPI data and has recovered most of the drop. A move over 106 would put the US Dollar in a stronger position possibly extending the upside DeMark Sequential Countdown

DXY US Dollar Index weekly

US Dollar bullish sentiment has been under pressure and did break below the one-year low end of the range last week.

US Dollar Commitment of Traders

Bitcoin and ethereum

Bitcoin Daily has been drifting higher lacking momentum. Regardless it’s mildly constructive

Bitcoin Bullish Sentiment has remained under pressure

Ethereum Daily has looked better than Bitcoin. Let’s see what happens with the Sell Setup 9 and Aggressive Sequential 13

Major USD Crosses

EURUSD Euro / US Dollar

Euro bullish sentiment has been trying to emerge

Euro Commitment of Traders

GBPUSD British Pound Sterling / US Dollar

British Pound Sterling bullish sentiment needs to make a new higher high

British Pound Sterling Commitment of Traders

AUDUSD Australian Dollar / US Dollar

Australian Dollar bullish sentiment improving

Australian Dollar Commitment of Traders

USDCAD US Dollar / Canadian Dollar

Canadian Dollar bullish sentiment lacking momentum

Canadian Dollar Commitment of Traders

USDCHF US Dollar / Swiss Franc continuing trend

Swiss Franc bullish sentiment remains strong

Swiss Franc Commitment of Traders

USDJPY Japanese Yen / US Dollar shows the Yen getting stronger and people will be watching 130 closely

Japanese Yen Bullish Sentiment stalled

Japanese Yen Commitment of Traders

RISK On Risk Off

This cross is often used as a risk-on / risk-off indicator

EURAUD Euro / Australian Dollar

Three major Yen crosses

EURJPY Euro / Japanese Yen

GBPJPY British Pound Sterling / Japanese Yen

AUDJPY Australian Dollar / Japanese Yen

US Dollar vs Emerging Markets

USDTRY US Dollar / Turkish Lira

USDBRL US Dollar / Brazilian Real

Brazilian Real Commitment of Traders

USDMXN US Dollar / Mexican Peso

Mexican Peso bullish sentiment is extreme

Mexican Peso Commitment of Traders

USDZAR US Dollar / South African Rand

USDCNH US Dollar / Chinese Offshore Renminbi (Yuan)

DeMark Sequential Basics from Bloomberg

More detailed Commitment of Traders explanation