Over the last few weeks the USD index has continued to consolidate in a relatively range, but one with an ever increasing bullish bias, as evidenced by the series of higher lows which are now beginning to form into a strong pennant pattern on both the daily and weekly charts. In this video I look at the key levels for the dollar index and the possible break out levels which could then trigger a more sustained bullish trend for the US currency in the longer term.
Anna,
The dollar index, while strong, is really justy less weak than some of the currencies that it is comprised of. With the Euro making nearly half of the value of the index; as it self-destructs, the dollar will look stronger than is really is.
The proof of the pudding is the price of gold, which should be going lower rather than its new weekly high (5 dollars off the all time high).
I think that many will be seeking safer havens than currency as all of these governmentally induced budget and currenct crises come to a head.
Thanks!