Buy Gold Buy Silver How to Buy Gold How to Buy Silver

Thursday, October 06, 2005

US Dollar Double Top?

Late yesterday the US dollar gapped down and is now down about .60 on the USD Index this early Thursday morning. Or, it looks like it is putting in a double top to its rally that it started after making that 80 low at the end of 2004.

You can see the gap down here.

It seems to me that the US dollar is now giving up the struggle to get above the previous July resistance at about 90 - 90.5 on the Index.

You can see the July resistance in this 6 month daily bar chart of the USD Index.

Watch for the USD to break its 4-5 week long uptrend line that started at the beginning of September. Unless prices of the USD get radical, this could take days or a week or two. I would prefer days but I have to take what ever the market dishes out, serves up.

A part of last night's Sinclair commentary:

"My reason for pointing out the roll over of the US economic recovery and the huge growth in the evil demon of over-the-counter derivatives is to structure the condition under which the US Fed will have to turn tail and run wild with liquidity injections into the system in order to offset a liquidity crisis of biblical proportions. All the hawk talk out of the Fed is talk by US Treasury salesmen to Asia to peddle the paper that is going to roar out of the electronic printing press of the US Treasury to finance the upcoming $550 billion + Federal deficit."

As the US dollar goes down, it should put a wind at gold's and silver's backs.

"Who made up all the rules / We follow them like fools ;
Believe them to be true / Don't care to think them through."
- "They", Jem Griffiths

0 Comments:

Post a Comment

<< Home