In my December 2 post, I wrote about how the crisis triggered by Dubai World, would lead to a strengthening greenback (USD).
A picture speaks 1000 words.
The 20-day intraday chart of my favourite trading pair, the USD/JPY (lead image), tells a 3-points story:
1. After an initial dip to a 87.35 low on Dec 9, the pair has been scaling higher (as anticipated by the flight to safety theory).
2. Long- and medium-term technicals now warn of a major structural shift in favour of a bullish USD.
3. Intraday speculators beware, however: intraday technicals point to a consolidation, with the pair trading between 91.55 and 91.85 during this Asian session.
For Comparison:
USD/SGD 20-day intraday chart
Disclaimer:
You may/may not find more of such garnishes on thangdynasty.org in future.
I would be more than delighted if you participate with comments and better still, analytical provocations.
However, please do not rush to plough your precious GOLD ingots into investments based on my observations.
thangdynasty is a work-in-progress maintained by an accidental equity trader whose brief foray into the world of investments turned out… not so brief.
Although unmotivated by the senseless pursuit of money in and for itself, she remains sadistically intrigued by the complex anatomy stealthily at work behind the whole spectrum of Markets – Fine Art, Financial, Fish and Fools.
A budding art collector and supporter of emerging artists, she slogs to prevent collateral damage to her bank account resulting from occasional manic art buying sprees.