Best Financial Markets Analysis Article The US Dollar has shown further weakness during the last days. The support at about 78 in the US Dollar index has been breached to the downside. Technically, this means that the downside target of about 67 has been activated, and that downside momentum should be building up during the next days.

To illustrate the possible coming downtrend in the US Dollar, we are adding the chart of our previous newsletter:

The EUR/USD exchange rate has been moving up accordingly as visible in the following short and longer term charts. Please notice that today is the day of the European Central Bank Decision, so that there may be some volatility, especially during the press conference. Tomorrow is non-farm payroll announcement, with typically big volatility as well. We are definitely not ruling out a small upside blip in the US Dollar in order to shake out some short before the big move gets underway.

[Please click here for additional information about the trading system and how to read the charts]

Both the short term and the longer term EUR/USD chart are currently bullish, pointing to higher prices in the EUR/USD. As mentioned, the economic data releases during the next 48 hours might result in some volatility. The EUR/USD exchange rate would only turn bearish on the longer time frame if it trades below the red sell line, currently at 1.4063.

US Treasury Bonds have also been weak during the last two days, which might indicate further trouble for the US-Dollar. Expecially the short end of the yield curve (2 Year Treasuries) has been very weak during the last week:

As a conclusion, the US Dollar seems to have started its crash mode, having broken resistance to the downside. As treasuries are also beginning to show weakness, prepare for the downtrend in the US Dollar to gain momentum and a rising volatility.

If you have any questions, please do not hesitate to contact us by writing an email to

New: Discounted subscription fees for retail (non-professional) investors.

New: Discounted subscription fees for retail (non-professional) investors. 3 Month subscription for only 75 USD !

By Frederic Simons

http://www.crossroadsfx.hostoi.com

© 2009 Copyright Frederic Simons - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Comments

Shalom P. Hamou
09 Aug 09, 03:21

Bernanke's Dark Kingdom.
Abstract: I am going to show here that central banks have excessive powers which are coherent neither with democratic principles nor with morality. Their existence can not be justified from a mathematical point of view. Worse, in light of the exercise of their extraordinary power by Bernanke, I argue that they can pose a real threat to democracy, peace, privacy and individual freedom. Because of the immediate dangers that are evoked in these lines I strongly suggest that you reproduce my deeds. Read "Bernanke's Dark Kingdom." __________

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.