Thursday, April 21, 2011

US Dollar posts the lowest Weekly Close in 32 Months

Not much more needs to be said about the US Dollar than this headline. They managed to push it just barely above the support level ahead of the long holiday weekend but it certainly looks weak heading into next week. The problem is even though the "short Dollar" trade is crowded, there does not yet exist a fundamental reason to buy the Greenback.

That bodes poorly moving forward, oversold, crowded or extreme bearish sentiment notwithstanding.


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7 comments:

  1. DocJimApril 21, 2011 at 4:38 PM

    It sure feels like a dead cat bounce is coming. Looking forward to the metals wrap this week Dan. Thanks once again!

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  2. Funky TapeApril 21, 2011 at 5:06 PM

    My question is, and maybe this is the $64,000 one, at which low does it have to take out in order for (whoever bids it back up) to just say "F it!" and it drops out of existence?

    Can it dip below the all time low and still be technically "rescued?"

    Read this blog everyday. I appreciate your time and thoughts, Dan.

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  3. HappyInTheWoodsApril 21, 2011 at 7:10 PM

    ok that was a really funny closing sentence. We're doomed aren't we Dan.

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  4. The News UNITApril 21, 2011 at 9:22 PM

    How do you chart uncharted territory? Can you do a story on that title? :-) Thanks Dan.

    The News UNIT

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  5. Trader DanApril 21, 2011 at 9:24 PM

    News Unit - we have to make projections based on extending lines drawn off inflection points. I will try to get something off about this sometime this weekend.

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  6. Tom LApril 22, 2011 at 5:32 AM

    That would be a welcome article, Dan. I notice you've been using the pitchfork tool to predict resistance points for Silver recently. I'm sure there are other methods.

    Ta,

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  7. Bikerdoc65April 23, 2011 at 3:54 AM

    The trade weighted broad US Dollar Index should fall through its 08 low last week, which could be the main trigger for gold and silver broke to their new highs. The Fed will release the updated data Monday afternoon. The chart below reflects how our trading partners see the value of USD.

    http://research.stlouisfed.org/fred2/graph/?chart_type=line&s[1][id]=TWEXB&s[1][range]=10yr

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