Hi Traders,
What an awesome weekend here in Tampa Bay. I mean, the weather couldn’t be any better! 80-degrees, sunny, low humidity… geez, it’s no wonder this place will be packed with out-of-state license plates next week and what normally is a 20-minute drive will take 40.  Oh well. I’m not complaining. Bring it on!
Okay… the COT.
The euro and pound have come off of their extremes between the commercials and specs. And, you might have noticed both EUR-USD and GBP-USD moving south. This is because the specs are selling and commercial are buying; based on past discussions, this shouldn’t have been a surprise. We’re seeing the same thing with the yen, silver and gold.
The looney (Canadian dollar) and Aussie dollar are off of their extremes after beating the tar out of USD. While NZD is still at extremes, which presages a turn-around. Interestingly, the US Dollar index is sort of in a knot; but, the dollar is gaining some strength which is clearly seen in EUR-USD. Is a dollar rally coming? Maybe. Based on the current price action, it appears this is the case. We need to hold on and pay close attention, especially swing and position traders. Intra-day, there have been and I believe there will continue to be good trade setups, regardless of whether a longer-term rally materializes, or not.
View this week’s COT charts here.
Be very well!