Chart of the day: Signs of dollar weakness
North Korea was in the news a lot recently, coinciding with US President Donald Trump’s Asia visit. What’s interesting is that despite the sabre rattling, the Korean won has appreciated in the process, moving from 1,150 to the US dollar at the beginning of October to 1,097 last week. Poised on support at the bottom of the very large triangle that has dominated for two years, the chart looks top-heavy. All aspects of the Ichimoku cloud system are bearish with the cloud now dropping. If prices were to close below 1,085, we would expect considerable dollar weakness here and probably against a raft of other Asian and emerging-market currencies.
Nicole Elliott is a technical analyst