US Dollar
There was quite a bit of chatter Friday about the Dollar Index breaking down. So today let’s take a look at this index on an intermediate term basis. Weekly Chart back to the September 2005 peak.
Notice the Fibonacci retracement levels covering the Sept ’05 through April ’08 decline; the 78.6% retracement level acted as great resistance. The blue vertical lines are Fibonacci time zones; notice how nicely they’ve coincided with turning points. That next time line is out about 5 weeks from now.
Fortunately, or unfortunately, depending upon your views the previous low point during the week of December 12 was down at 77.69. While I have no reason to suspect, that it might get there at this point, if that level were to break the dollar is in trouble as we would then have a series of lower highs and lower lows.
Wish to trade the dollar index: ETF’s are available to trade the Dollar Index – Bullish (UUP), Bearish (UDN).
ETF Range Projections 2/9
The senate is hoping to vote on the bailout bill by tomorrow. The treasury has delayed by a day it’s announcement on bank bailouts perhaps funding a mortgage-mitigation proposal to help troubled homeowners avoid foreclosure.’
Overseas markets this morning: Nikkei 225 -1.33%, Hang Seng +0.84%, Shanghai Composite+1.99%, DAX -0.34%, and the FTSE 100 +1.34%.
As of about 8 AM the futures were pointing a bit lower: Dow -61, S&P -8.50, Naz -9.5 , Oil +$0.42, and Gold -$10.50.
