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U.S. Dollar Index Drops Again

|Includes: FXE, UDN, PowerShares DB USD Bull ETF (UUP)
The U.S. Dollar Index is now approaching its November 4, 2010 low at $75.63. The U.S. Dollar Index has now declined by nearly 15.0 percent since June 2010. How low can the U.S. Dollar Index actually go? Many economists say that this decline is good for the stock market because the stock market indexes will simply inflate higher. However, people on fixed incomes are losing purchasing power and they rarely have the ability to find new ways of creating extra income. Seventy five million baby boomer's are scheduled to retire during the next three years in the United States. That retirement may have to be on hold for many as goods become more expensive.

The next support level for the U.S. Dollar Index is going to be around the $75.50 area. Should this level fail to hold as support for the U.S. Dollar Index the $74.00 area would be the next support area. The $74.00 area was the November 2009 low. It seems that the U.S. Dollar Index seems to pivot often in the month of November. The all time low for the U.S. Dollar Index was made on March 17, 2008 at $70.69. This would really be the last support level for the U.S. Dollar Index before the many investors throw in towel. Please remember the U.S. Dollar is the worlds reserve currency.

Despite today's large point rally in the major stock indexes the U.S. Dollar Index continues to decline. When the U.S. Dollar Index falls everything for sale that is needed for survival around the world becomes more expensive. Investors must keep close watch of the the U.S. Dollar Index as we approach these important support levels.




Nicholas Santiago
InTheMoneyStocks.com