sfq

The USD has slipped below key support against the Swiss Franc. Yet today the market posted a small reversal signal suggesting the USD will retrace the last two weeks of weakness. The short term reversal suggest the dollar will rally back to .9975 in the immediate future. A failure of the dollar to advance beyond $1.00 wouls give more conformation of a trend reversal  Scanning through other FX charts one can find several large triangle formations. Triangle formations are known to be followed by strong trends, but they do not give a clear signal of direction. One needs to wait for the breakout before knowing the direction. Triangle patterns are in late stages of development in USD vs, Euro, DKK. SEK, NOK and AUD vs SGD. Good trading markets look to be around the corner. The trend looks to be a declining dollar, but we suggest to wait a few more days before getting a broader based signal.