Dollar Index

hi nico, i like your work.. particularily the long flatlined ma studies : ) been bullish on the dollar since last july and still am. I guess I will remain so at least for the duration of the recession and probably as long as the administration. the power of the initial thrust promises more to come. a move above 87-88 will be the start of a new leg up. imho

If dollar continues higher, I would like to see what happens with gold. This is what I am looking at the moment. Cos although the dollar index has shown some strength the last few days, gold is strong as well. One of the two is giving out the wrong signal.

Edited by nicolasillo, 31 January 2009 - 05:46 PM.

If dollar continues higher, I would like to see what happens with gold.
This is what I am looking at the moment. Cos although the dollar index has shown some strength the last few days, gold is strong as well. One of the two is giving out the wrong signal.

You're right nic.

I'm also watching things closely. I've been a bit surprised at how well gold has held up.

However, I'm getting the sense that the strength in DX is mainly due to EUR and GBP weakness...and that after this subsides, we may get a clearer picture of whether gold can continuing going up in what really should be a deflationary environment

Something isn't right and one of them is definitely giving the wrong signal, as you indicate