Saturday, April 9, 2011

Dollar Working Lower But Bottom In Sight

The US Dollar index continues to work its way lower, but it is likely in a final wave toward a bottom that will be somewhere between the November 2009 and the lower parallel channel line.  The RSI is not yet completely oversold and the MACD is turning down.  Dollar shorts should not overstay their welcome.  Even if the longer term future of the Dollar is lower prices, it would be reasonable to expect a substantial countertrend rally from somewhere out of the target zone before much lower prices are seen.

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