DXY, AUD/USD, NZD/USD and PL Forecast – US Dollar Continues to Strengthen on Tuesday

DXY Technical Analysis

The dollar index has exploded to the upside, and now the question is, can we stay above the 99 level and by extension the 200-day EMA? Have we seen the US dollar bottom? This could be a major shift in markets in general as traders will give up all of those massive, short positions that hit a 14-year high recently and now has to run back to the Greenback.

Things had gotten a little overdone and now I see we are at least contemplating a turnaround. Pullbacks, as long as they can hold 98, I think, are still viable buying opportunities, especially if the war continues to escalate, which so far it looks like there’s no real threat of it not doing that. If we break 100 that would be huge.

AUD/USD Technical Analysis

The Australian dollar is falling apart during the trading session as we are testing the 0.70 level and I think it’s possible that we just peaked. Because of this, I am looking for the Aussie dollar to drop quite a bit from here. It will be noisy, but as long as we stay below 0.7150, I have more of a bearish tilt. I’ll be looking to fade short-term rallies.

NZD/USD Technical Analysis

Its cousin, the New Zealand dollar, has fallen apart. It has tested the 200-day EMA. We’ll have to wait and see if it breaks down below there. I’m looking forward to short this pair yet again on short-term rallies that have long wicks to the upside. The 0.5950 level is your ceiling at the moment.

If we close below this 200-day EMA, I think the Kiwi dollar is going to find the 0.57 level over the next couple of big drops. All things being equal, I have no interest in buying the Kiwi dollar because, quite frankly, it was weaker than the Aussie dollar before any of this started.

PL Technical Analysis

The platinum market has fallen to test the $2000 level. I’m checking this market because a lot of times it moves in tandem with silver, and if it gives up 2000 on a daily close, that would be a very ugly turn of events. It has bounced so far so it could be a buy on the dip scenario, but things are getting a little bit dangerous here.

We are down just over 10% and if platinum unravels, you probably see gold and silver follow, definitely silver, most likely gold. It is worth noting that there is pressure in both of those markets, so I’m watching this one for a breakdown.

I’m not looking to trade it on short-term charts, although one could make the argument of trading it to the long side if we do, in fact, bounce. But even on the 15-minute chart, it looks a little suspicious, so keep an eye on platinum. It could give us a heads up on silver and then, possibly by extension, the gold market. It’s the US dollar that is swallowing everything right now, and I think that’s the main takeaway.