"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat


Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput

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Thursday, October 27, 2011

The US Dollar gets Annihilated

"Whack a Mole" does not even come close to what the Forex crowd did to the US Dollar today. Earler in the week it fell below the 50 day moving average but seemed to be trying to regain its footing just above the 76 level.

Today it was blasted to kingdom come breaking through multiple support levels in the process and crashing through the critical 100 day moving average as if it did not even exist.

Based on the current chart picture, there seems to be little in the way of downside support until it reaches the former consolidation zone. Failure to stop there and it will make a new low.


4 comments:

  1. Thanks Dan. Read your blog every day.

    ReplyDelete
  2. "Based on the current chart picture, there seems to be little in the way of downside support until it reaches the former consolidation zone. Failure to stop there and it will make a new low."

    Great news!!

    ReplyDelete
  3. Pretty bizzare action really.

    Looking at the positioning of the players previous setups would strongly suggest a dollar breakout, a huge one in fact.

    That it has moved so strangely is odd.

    ReplyDelete
  4. The only "logical" explanation is the dollar LONG boat was overcrowded. If the weak longs are not shaken out, there can be no real breakout of the dollar.

    ReplyDelete

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