Let's examine the weekly chart of the US Dollar index:
1) the USD index is still in a rising wedge technical formation.
2) it tested the lower trendline last week (point n°4) and bounced around the 74.0 price level.
3) if it does not go higher than 74.0 in the short-term, it will likely fail. And if it fails, lots of people will scramble for taking the exit door.
Pay attention to the price of gold: it acts as a leading indicator as to what happens to the US dollar. If gold rises, the USD goes down, and vice versa. And the USD is now inversely correlated to the stock markets: when the USD goes down, the S&P500 goes up and vice versa.
Your Forex information is very good and I will follow your recomendations. As for gold, I think it is beginning to take on a life of its own. I am beginning to see days when gold and the USD both go up. I believe as the dollar falls, it will become less relevent to the price of gold. All currencies will see a rise in the price of gold.
ReplyDeleteVintage49