Posted on July 07th, 2009 in Currency Trading News
The US Dollar is likely to see gains in the days and weeks ahead as stock markets reverse lower, boosting demand for the safety-linked currency. The Dow Jones Industrial Average looks to have broken support at the neckline of a Head and Shoulders topping chart formation, hinting a bearish reversal is ahead: Dow Jones Industrial Average (daily) The Dow is closely correlated to most of the major currency pairs, with the high-yielding and commodity-linked currencies naturally showing the strongest relationships because of their inherent connection to trends in risky assets. The correlations to EURUSD and GBPUSD are also substantial: DJIA vs.