CLICK ON CHART TO ENLARGE
U.S. Dollar is now facing a falling 10-year resistance line and Dollar bullish sentiment is almost reaching 80%.
Despite these high bullish readings, if the Dollar succeeds in a breakout, odds move up considerably that “Deflation/Falling prices” picks up speed.
The Dollar Index needs to overcome a longtime resistence at about 95 that was made in 2006. Don’t talk a longtime trend reversal before it makes a firm breakout. We already saw too many false Japanese NK index reversals in the past twenty years and know a longtime trend is very difficult to break out.
More chartist Hoo Hah. WHy not draw the line at the peak in 2005? Or at the very least in early 2009? Looks to me like the dollar has failed to break out 2 or 3 times and each peak is lower. Why expect it to succeed now? Looks more like a shorting opportunity.
The EU is so dysfunctional that a 89 is almost sure! What I do not understand is that evrybody seeks “shelter” buying USD?
American politicians are just as bad as the greek. I prefer PM as there is no counter party risk.
A break has 88-89 written all over it. I think it’s coming.
I see today the dxyo closed at 82.20. Good for the consumer!?
Question: what is the relationship of price of the dxyo to the dollar bill in my wallet? Thank you for all of your market wisdom!!!