Here is a 2 year daily chart of the US Dollar Index which has a long term downward trend, but short term upside momentum.
Even though it is moving up (and Gold/Silver going down), it should only be temporary as investors are parking their money into the US Dollar due to volatility in the financial markets. The Index is still producing lower highs over the last two years:
$88.71
$83.52
$81.44
$81.31
$80.43 (Last peak)
Current rally ?
The last peak of 80.43 was very close to taking out the last high peak of 81.31 in January of this year which would have broken the downward trend of lower highs. Keep an eye on the current upside rally, if the downward trend continues, the current rally (78.44 and rising) should not take out $80.43.
When the European debt issue is in the news, investors will flock to the dollar. If it does not make headlines, the dollar will drop again... risk on, risk off...
Even though it is moving up (and Gold/Silver going down), it should only be temporary as investors are parking their money into the US Dollar due to volatility in the financial markets. The Index is still producing lower highs over the last two years:$88.71
$83.52
$81.44
$81.31
$80.43 (Last peak)
Current rally ?
The last peak of 80.43 was very close to taking out the last high peak of 81.31 in January of this year which would have broken the downward trend of lower highs. Keep an eye on the current upside rally, if the downward trend continues, the current rally (78.44 and rising) should not take out $80.43.
When the European debt issue is in the news, investors will flock to the dollar. If it does not make headlines, the dollar will drop again... risk on, risk off...
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