Monday, February 28, 2011

US Dollar ~ 28 February 2011

The US Dollar hit a new yearly low today so I think it's time to have a look at the bigger picture again:

The $DXY is near the lower support line of a multi-year triangle right now thus as long as we stay above 76ish we could see an intermediate bottom around these levels and a bounce probably even up to the high 80's to the resistance line.

I don't think such a big rally can happen without a correction in the stock market though so we have to watch the SPX closely.