Saturday, November 7, 2009

The Dollar - pattern broke supports

This is an updated chart of the dollar from several days ago. This raises the odds of some lower probing...with downside targets in the 74.5 area. However, if the multiple turn dates occurring early next week play out the lows could still be in already and the dollar could make a huge move, otherwise it will be more of the same dribbling down.

Interestingly, the large healthcare reform bill being voted before congress may have large implications for the future of the dollar and interest rates. A plan as misguided with regard to debt and constitutionality is likely to cause some real issues with interest rates and could be a good excuse to get 3 of 3 down moving...but for now the dollar chart forecasts weakness.

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