Sunday, February 08, 2009

US Dollar - calm before the waterfall. GDX, AUY, HUI, XAU, GDL, TNR.v, CZX.v, SST.v, OK.v, MGN, FVI.v, CNU.v, RMK.v,

Please read previous article on fundamentals driving US Dollar. Behavioral influence will be realised once TARP2 will be announced and market will try to rally bringing Fear VIX below 40 and risk appetite back. Technically US Dollar is weak finishing its recent counter trend rally. Second double top is forming with weaker momentum indicators. Bearish Rising Wedge on a second leg of counter rally is a continuation pattern of move back into the multi year trend down. Daily tops are lower with lower RSI reading, MACD is crossing into Sell signal, STO is turning negative with Lower Highs representing level of resistance at 86-87 levels.
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