USD Is Ripe

for a Sell-off:
http://stockcharts.com/h-sc/ui?s=$USD...id=p00821639566

Edited by redfoliage2, 20 May 2010 - 03:35 AM.

US treasuries too:
http://stockcharts.c...id=p11402380598

6 months ago I would've said that gold's landslide into this week wouldn't indicate dollar weakness is upon us, but given the behavior of gold prices vs. dollar strength in the last 3 months or so, you can throw those rules out the window after lighting them on fire. That being said, its hard to ignore the fact that the dollar has been the last man standing among a sea of broken, ugly, scary charts. Even gold, in a sizzling trend as lately as Thursday or Friday LW, has really formed a little cliff on the chart, and looks like its considering the jump. Any thoughts to why sudden down day in USD? Saw some put buying in the UUP as well, which is pretty rare. I dont trade forex, but having observed that market for a year or so, any dollar weakness most likely translates into Yen strength--which might not hurt stocks today or tomorrow, but will eventually drag down the EUR/JPY price, and long story short be bearish for the Euro--and her cousin the US stock market. I havent checked currencies yet, just getting up today, but I'll bet EUR/USD is up, EUR/JPY is CRUSHED and, USD/JPY is down. As the dollar sells off it short term boosts the EURO and GBP but if dollar weakness is legit, by Monday we probably see the eur/usd below 1.20. And possibly USD/JPY retest that 88 support level that it broke through a day or two before the Dubai panic Thanksgiving week 2009.

fastest dollar sell-off will come very soon from that parabolic peak.