Monday, August 26, 2013

US Dollar Tests Important Support ... Charts!

The US Dollar Index just recently bounced from support around 80.50.  Then it tried to get back above its 200-day moving average, and so far it has failed. A failure here would bring another test of support, and potentially a breakdown to test 78.92.

(Updated chart)

But there is even more at stake. The USD Index is also testing a rising trendline drawn under its 2011/2013 lows. A decisive close below that line would end the dollar uptrend that's been in effect for the last two years. 
(Updated chart)

If the US dollar breaks that support, what would that do to commodity prices? To the price of oil ... silver ... and gold?

If the US dollar breaks that support, you ain’t seen nothin’ yet.

No comments:

Post a Comment