Friday, August 7, 2009
A Look at the US Dollar
Yesterday I brought up the US Dollar, along with the Treasury auctions next week. The Dollar has shown some strength of of the Jobs Report numbers this morning and is currently at 78.9 as I type. I have annotated 2 charts below, one a daily highlighting a downtrend channel. The dollar is now testing the upper end of that channel near the 79 level. On the second chart there appears to be a possible "Bullish Divergence" pattern setting up. My observation suggest a rally in the dollar could bring it up to the 80 level, then a resumption of the decline towards the 76 support level. Bottom line...depends on how the Treasury auctions go next week?!
*click on chart to expand image