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The US Dollar, Euro & Gold
By Bob Hoye April 19, 2008
Technical observations of RossClark@shaw.ca In the past three decades, once the Dollar became oversold (or conversely the Euro became overbought) the chance of a rebound to the twenty or fifty week moving averages increased dramatically. We are there now. The Dollar produced a weekly downside capitulation alert the week of March 28th. The Euro staged weekly upside exhaustion alerts March 28th through April 11th. Couple this with a weekly sequential sell setup in the Euro as of April 11th and we are in a position to undergo a tradable dollar rally.
WRAP: ·
The dollar index has successfully completed the “Sequential
Buy” pattern. ·
The euro has completed the “Sequential Sell” pattern. ·
Tradable moves in both, as well as the gold sector seem to
have started. ·
The following cartoon emphasizes that a firming dollar could
exacerbate still over-extended credit markets.
bobhoye@institutionaladvisors.com
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