Friday, November 10, 2006

US Dollar Index

There has been much discussion about the future of the dollar in recent years, mostly based on the fundamentals of the US economy, inflation, interest rates, money supply, whatever.

My simplistic view is bearish. However the maladies afflicting the dollar are also endemic in the other western currencies... particularly the anglosphere.

In cases where I haven't really got a clue, which pretty much includes everything, I'll just resort to charts. lol

Technical analysis can be an extremely subjective study at the best of times, as is this look at the US dollar. Depending where a traders draws support/resistance, trendlines etc can give completely different pictures. The dollar has either broken support or is sitting at support, depending on which line you want to believe.

Either way, I think we are a pivotal juncture in the dollar, and the next few days could reveal the medium term future of such.

I'll be keeping an eye on it. Stay tuned.

1 comment:

sexy said...