U.S. Dollar Falling Down; USDX Under 75
February 1st, 2008WARNING: This is not a recommendation to buy, sell or hold any financial instrument.
“The strategic view still looks promising for dollar bears.”
—A Look at the U.S. Dollar Index, January 17, 2008
Yeee HA! Lean over you pig. Leeeeeeeeeeaaaan! For dollar bears/foreign currency holders: It’s got to take out 74.50 on the downside, though. That’s the all time low. See my mid January analysis on this for more detail on what lies ahead. * chuckle *
And gold is behaving with a shocking gap up. Nice. (I don’t look at the gold charts anymore. Seriously. I don’t. I’m not trading it. Why look at it?)
The resistance on EUR/USD is 1.4967, FYI.
I love it when a plan comes together as much as the next well positioned Cryptogon crash trader, but keep your eye on the action on the dollar. We’re just under 75 now on the U.S. Dollar Index, that’s gooooooood! But we don’t want to see a double bottom on 74.50. Say it with me now! No bounce off 74.50.
I’d be handling snakes and speaking in tongues if I thought it would help that thing take out 74.50. Well, there are no snakes in New Zealand. Does possum count?
Via: Bloomberg:
The dollar fell, headed for its biggest weekly decline in a month against the euro, as traders bet the Federal Reserve will cut interest rates again to avert a recession.
The dollar dropped versus 15 of the 16 most-traded currencies this week, falling the most against the Australian and New Zealand dollars. Growth in U.S. payrolls probably accelerated in January from the weakest pace in more than four years, while staying at a level that indicates a softening job market, economists said before a government report today.
