Thursday, May 29, 2008

US Dollar Index Technical Analysis

1 year chart of the US Dollar Index, shows some negative divergences alongside a rising trend chanell and a possible intermediate term base forming while gold gets hammered below $880 at the moment. The index may trend up but it may do so on increasingly weaker technicals, making the sustainability of any rally questionable.

My May 24th, 2008 chart of the GLD noted a potential fall back down to support levels below $90, thats happening now due to the recent weakness in crude oil and bounce in the US Dollar. The longer term picture remains unchanged on a technical basis for the US Dollar's down trend.


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