Daryl Guppy is an independent technical analyst who appears frequently on CNBC Asia. He runs training, analysis and resource workshops for retail and professional financial market traders involved in stocks, CFDs, warrants, derivatives, futures and commodities in China, Malaysia, Singapore and Australia. He has his own trading company, guppytraders.com.
There is a reasonable probability the U.S. dollar index will fall below 74.50 and retest the lower edge of the base of the symmetrical triangle pattern near 72.50. Traders will look for a consolidation pattern to develop between 72.50 and 74.50.
Any fall in the euro-dollar below $1.36 has a high probability of cascading into a fall to $1.29, which in turn, will have a high probability of quickly falling into the consolidation support area with a potential downside target near $1.24.
Will Friday's meeting at Jackson Hole dig markets deeper into a hole, or get the U.S. out of one? The early signs will come from the Nasdaq, rather than the Dow and the index could tumble if the results of the meeting disappoint.
The potential for a rebound in the dollar has increased in the run-up to the presidential inauguration day.
Oil prices developed a recovery in 2016 but will this continue in 2017?
The Nikkei has resumed its breakout uptrend, after dropping quickly on Donald Trump's victory.
The current downside target is $1,180. Failure to hold at this support level sets a target near $1,050.
Daryl Guppy is an independent technical analyst who appears frequently on CNBC Asia.