Best Technical Trades Paul Ciana, CMT MLPF&S [email protected] Technical trends for Trump ¢ Bullish USD: Breadth and technicals favor USD. Overall they point to a stronger US dollar in 2017. We are bullish USD/JPY. ¢ Higher yields: US 10y and 30y yield made large wedge bottom patterns, pointing to a 61.8% Fibonacci retracement of 2.98% and 3.80%, respectively. e We recommend buying a NZD/USD 5m .69/.66 put spread 1x1.5 for 43 USD pips (off of .7100 spot). USD rally is turning into an outright bull The Bloomberg US dollar index is approaching all-time highs. The number of USD crosses above their 200-day moving average has broken out higher. The number of USD crosses reaching overbought on RSI (bullish momentum) continues to rise. The USD cumulative advance-decline line recently signaled for tactical USD strength and would turn outright bullish with a trend line break and new index highs. Chart 79: Bloomberg US dollar index, weekly chart with USD breadth measures MBRDXY Index - Last Price MISMAVG (200) on Close (BRDXY) 119L47 Resistance: 1255 = | A a —S = a ue! Why A, yw Papin ee jy T1150 [ a +1100 ; Ls0s0 =, fey | Ss! BUSD Cumulative AD Line +23.00 et | no alin, oo , pyar Li ny, $58.0, iw =t “a Pregresshve AD Lir 7 pal a Ye =e" si breakout fr f si 7 in ae ee se ee oe r250 le of USD crosses > 200d SMA +100 i 30 Breakout t 15 r10 Ls Be of USD crosses RSI>70 30 hs ee Rising bullish momentum £16.00 | yr eee Lee eT Lee, eee ln AMR i tt aR Rk ch 2013 2014 2015 2016 2017 Source: BofA Merrill Lynch Global Research, Bloomberg waflipa. Global Rates, FX & EM 2017 Year Ahead | 16 November 2016 47 HOUSE_OVERSIGHT_014777