Highlights and themes
The theme of US Dollar strength continues. There is a recent DeMark Sequential sell Countdown 13 however this moved into upside wave 3 of 5 and with two Setup 9’s there is a potential secondary Sequential on day 5 of 13. Until this breaks which the current Sequential could work, I am sticking with the strong dollar. Yen, Euro, Pound, and crypto remain under pressure.
Currency Sentiment Overview
Currency sentiment highlights
US Dollar Indexes
DXY US Dollar Index daily has a new Sequential sell Countdown 13 and a recent Sell Setup 9. With the completion of the Sequential 13 it now shows the secondary Sequential on day 5 of 13. Importantly this also qualified into upside wave 3 with a potential upside wave 3 price objective of 106.73
DXY US Dollar Index weekly shows the resistance at 105-106
Bloomberg US Dollar Index weekly, unlike the DXY did get a weekly Sequential buy Countdown 13 and has the upside Setup on week 5 of 9. Clear resistance here, too.
US Dollar bullish sentiment remains in the extreme zone at 83%. This remained in the elevated/extreme zone for all of 2022.
US Dollar Commitment of Traders large speculators and weekly DeMark Setup, Sequential, and Combo indicators
Major USD Crosses
EURUSD Euro / US Dollar is on day 11 of 13 with the Sequential and there also is a secondary Sequential not shown in progress too.
Euro bullish sentiment have been weakening
Euro Commitment of Traders large speculators and weekly DeMark Setup, Sequential, and Combo indicators. Topped with Sequential 13 on weekly time frame.
GBPUSD British Pound Sterling / US Dollar has been working lower holding last week’s lows
British Pound Sterling bullish sentiment nearly making a 2023 low
British Pound Sterling Commitment of Traders large speculators and weekly DeMark Setup, Sequential, and Combo indicators
AUDUSD Australian Dollar / US Dollar held last week’s lows
Australian Dollar bullish sentiment remains under pressure
Australian Dollar Commitment of Traders large speculators and weekly DeMark Setup, Sequential, and Combo indicators. Recent DeMark Combo 13
USDCAD US Dollar / Canadian Dollar nearing upside TDST resistance with a Sequential on day 10 of 13
Canadian Dollar bullish sentiment remains under pressure
Canadian Dollar Commitment of Traders large speculators and weekly DeMark Setup, Sequential, and Combo indicators
USDCHF US Dollar / Swiss Franc still has Sequential pending with important TDST resistance at 0.8998
Swiss Franc bullish sentiment remains under pressure and is oversold.
Swiss Franc Commitment of Traders large speculators and weekly DeMark Setup, Sequential, and Combo indicators
USDJPY Japanese Yen daily remains weak
Yen bullish sentiment remains under pressure. It can and might stay oversold as it has in the past.
Yen Commitment of Traders large speculators and weekly DeMark Setup, Sequential, and Combo indicators
crypto
Bitcoin is back under 26k and has held the TDST support at 25,188. There is a Sequential now in progress pending on day 3 of 13.
Bitcoin bullish sentiment made a new recent low
Ethereum is holding support and TDST support at 1459 is major support. Downside Sequential is pending on day 9 of 13
Three major Yen crosses
All three have stalled but remain in bullish patterns
EURJPY Euro / Japanese Yen
GBPJPY British Pound Sterling / Japanese Yen
AUDJPY Australian Dollar / Japanese Yen
US Dollar vs Emerging Markets
USDBRL US Dollar / Brazilian Real
USDMXN US Dollar / Mexican Peso with another reversal attempt? They haven’t worked for long all year.
Mexican Peso bullish sentiment reversed down last week. 60% is the line in the sand support.
USDZAR US Dollar / South African Rand could see Rand work lower
USDCNH US Dollar / Chinese Offshore Renminbi (Yuan) backed off with a reversal up on Friday. Let’s watch to see if the pending Sequential will continue.
DeMark Sequential Basics from Bloomberg
Detailed Commitment of Traders explanation
