The Dollar Looks Like It's At a Crossroad

While I think the dollar is heading down longer term you’re guess is as good as mine in the short term. What I do know is that it’s at RSI trendline resistance right now and it’s either going to bust through it (which would be bad for gold) or it’s going to reverse off of it and collapse (click on chart to enlarge). The 50 RSI value is significant and it closed just a hair above it. If it can hold then I’d say the chances of the dollar rallying further are better than average, which would pressure gold in the short term.

Comments

[Go ...Marc ...:]

I agree.... good analysis.. Jeff. Just took profits in gold positions and moving to START "THE TRADE OF THE YEAR".....SHORTING THE LONG BOND....

Jan 06 06:15 PM

[Kunst:]

OK. Got it.

Jan 06 06:24 PM

[sorgmot:]

Asset valuation problems with fiat currencies lead one to question why any such currencies still exist.

The German economy was burned up by the inflation of asset prices of things like food in marks.

The USA economy is now in collapse as the price of houses and common stocks fall against the US $.

As of the beginning of 2009, the USA is in a financial crisis which rendered hundreds of USA citizens and business deeply in debt and penny-less, They owe more $'s than they own.

Ala-Ben and the lawyer hoard should take full credit for the 2008-2009 ongoing financial collapse in the USA.

Ala said 30% per year interest rates would by just fine and also debt to equity ratios of 96% or higher on real estate. were just right for the banks and the public. In fact Ala said anything the banks wanted would be just right.

Ben said that printing public debt money in infinite amounts would be just fine as USA real asset values fell in terms of USA $ even as the US banks refused to write bigger loans on those assets.

Ala set the stage for USA financial collapse. Ben made it happen. What a team.

USA real estate prices are in collapse in 2008 and 2009 and there is no end in sight.

As the Mongol hoard thundered out of Asia minor because they were starving to death there and moved into eastern Europe to find some food, So too, the USA lawyer hoard thundered into all branches of all the USA governments, local, state, and federal to feast on regulation writing and mega lawsuits which destroyed whole industries and greatly raised costs of operation all that remained.

Lawyers caused great increases in house construction and operating costs which lead in turn to the of owner inability to afford a house and lead to over borrowing and the current belated mortgage defaults and loss of down payments for houses and pauperize the general population in the USA.

And now, the lawyer hoard controls all branches of the Federal USA government.

May the force be with you.

Jan 07 01:12 PM