USD 02 (Oct 09 - Sep 10)

[winston]

Weekly Review

The dollar managed to recover some ground, though it was sharply lower for the week. A quick selloff early in the week, then moving laterally at a support level at the top of the February and March range.

It was holding that and trying to put in a higher low for a new bounce (1.3042 Euro versus 1.3078 Thursday). It was a week where the dollar struggled against the Euro and other currencies, even though the Japanese government intervened in its currency market, selling Yen in order to drive the price of the Yen lower.

The dollar did not have a good week, but now we will see if it can hold after coming back and testing the support I anticipated it would test.

Source: MarketFN.com

[kennynah]

78 in 4-5 weeks

[kennynah]

this fella getting stubborn at 81.15 level.... i need this to crack for /DX to fall through it...

c'mon.....

[iam802]

maybe waiting for major news (worldwide)
- when is JPY going to drop? (<< solo game)
- RMB going to increase? (<< wait long long)
- EURO (<< maybe, it will happen when Greece is 'safe' in Oct??)

[kennynah]

fomc tmrw....

maybe..just maybe....people are expecting heliben to hint at raising IR...

[kennynah]

With my ultraman gamma-rays...disintegrate the /dx tonight !! Hahaha

C'mon..break that 81.15 mark

[winston]

CURRENCY CRISIS HAS BEGUN

It's been my position for a while that Bernanke's monetary policy would eventually create a currency crisis in the world’s reserve currency.

I warned that crisis would begin as soon as it became apparent the dollar was caught in the grip of the 3 year cycle decline.

I had three conditions that had to be met before I was willing to call the beginning of the end. The first condition was for the dollar to move below `82. That was the warning shot that problems were developing.

The second and third conditions were a move below long term support (80) and a failed intermediate cycle.

The drop below 80 this morning has now completed the final two conditions.

http://goldscents.blogspot.com/

[winston]

Weekly Review

Dollar. It was another sharp downside day for the dollar, and the key thing to note is that it broke below the early 2010 lows. It has cracked a new low for the year (1.3492 Euro versus 1.3321 Thursday). Very ugly week and a half on the dollar.

It rolled over with a short umbrella top and is now diving below these lows. Will it go lower? Beware the false breakdown but, given the action in gold and other markets, the dollar is pricing in inflation. Indeed, our government wants to inflate our way out of the deficit. It is actually fostering the inflation and the devaluation of our currency.

As I have said before, no country has ever devalued its way to prosperity. We will create inflation, and we will create stagflation if we continue on this path. We are going down the 70's path, which was a slight variation from the 1930's path.

Unfortunately, the results are going to be just slight variations as well, and not the return to growth after we just finished the summer of recovery in the United States.

Unemployment staying below 8%? The summer of recovery did not quite happen. Kind of like the summer of love in San Francisco when George Harrison just found out that all the kids were dirty and slovenly. Not the real love and peace we were looking for.

Talk to most anyone in this economy outside of the big corporate execs that got stimulus money and they are not exactly finding love and peace either. Now it is fall. The fall of false hope? It is election year, so that would make sense.


Source: MarketFN.com

[kennynah]

watch it @245pm.../DX is making a move upwards past 79.80....a resistance....

[winston]

THE DOLLAR IS GETTING FLUSHED DOWN THE TOILET

The topic of the week in the precious metals market: "What's driving gold and silver prices higher and higher? Should I sell and take profits?"

Today's chart is the driving force behind the hot topic. It's the past 12 months of trading in the U.S. dollar.

Last week, Ben Bernanke told America he's ready to do anything in his power to keep the U.S. economy inching along. This means he'll do anything to support asset prices like stocks and housing… even print up fresh money.

The market is reacting to Ben's idea by flushing the dollar. As you can see from today's chart, the dollar has been clobbered to its lowest low in more than seven months.

Real "hard money" assets like gold and silver are soaring to their highest levels in decades as a result.

That covers the first part of our topic. And the second? Sure… gold and silver are overbought in the short term. They're due for a "relief" correction. But our view is, take a page from China's playbook and use any weakness in the precious metals to buy more


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