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.


at

4 comments:

  1. Titus AndronicusOctober 27, 2011 at 6:14 PM

    Thanks Dan. Read your blog every day.

    ReplyDelete
  2. AnonymousOctober 27, 2011 at 7:10 PM

    "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. qussl3October 28, 2011 at 12:20 AM

    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. curiousmindOctober 28, 2011 at 10:58 AM

    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

Note: Only a member of this blog may post a comment.