The hourly chart for UUP, the ETF which provides a bullish view on the US dollar against a basket of other currencies, is showing a large degree of inter-day volatility but has still failed to convincingly penetrate the very pronounced trendline through recent highs.

The confusion in the FX arena, which was highlighted by the incongruity between the better-than-expected NFP data on Friday and yet somber comments by Bernanke yesterday, is being felt across most asset classes and, in particular, yesterday’s trading in US equities was one of the most lackluster sessions for some time.



USD/JPY is trading back below the 50-day EMA and approaching the 88 level as this is being written, and this is not what the BOJ wants to see nor what has, in all likelihood, been priced into the recent advances in the Nikkei 225.



Sterling is at a critical juncture against the US dollar and looks ready to test $1.6270 which was touched in the aftermath of the Dubai news. Meanwhile, the EUR/GBP cross rate is also at a key level where, if the trendline drawn can be broken, this pair could be headed towards another shot at parity in coming weeks.



AUD/JPY is revealing violations of two nested rising wedge patterns.



As discussed here last week, Terra Industries (TRA) was revealing a bull flag, and could have delivered a 5% plus return yesterday despite the weak close.



Also noted here last week, Genzyme (GENZ) is succumbing to renewed selling as the pullback pattern appears to have completed.



Clive Corcoran is the publisher of TradeWithForm.com, which provides daily analysis and commentary on the US stock market.