Tuesday, August 25, 2009

U.S. Dollar down, down, down ... until it isn't?!

So Bernanke's acceptance speech today said the Fed's goal is to helpmake the economy stable - is that supposed to include further dollar weakening? Well maybe, as all the activities inside the Beltway nowadays seem designed to grind the dollar lower! Check the Bernanke bill image- I guess the Fed has (or needs) 4 million of those for its balance sheet, if I understand today's news headlines correctly.

Below is my daily chart of the dollar index ($USD). It's worked its way essentially sideways, indicating it's inching closer to up or out. No new low here ... yet! As a trader I've got to say, let's see either way. I'm tilting to the idea it remains above the low (that went under 77.92). But if it loses support then it might be right to buy gold and ask questions later ...!

No comments:

Post a Comment