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Dollar Collapse Starts Monday?

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http://www.marketoracle.co.uk/Article12442.html

Big swings in USDX (dollar index) and gold last Thu/Fri as the bond sales were digested.

It's squeezed between a falling trend line and horizontal support at 78.30

Whichever way it breaks could be big and will impact everything else.

Charts in the article..........

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Forgetting the TA side of things for a minute, it strikes me that both the US and UK have been very smart at keeping their ccys where they want them in terms of relative weakness to the Euro.

Recent history proved conclusively that the FX market cannot be influenced directly by CBs - however, a nation with a free floating ccy can send the appropriate signal out at the right time and try to influence the FX market that way.

IMO, the US and UK are happy to see their ccys at these levels against the Euro, and are counting on the ECB's complete inability to counter this, due to lack of agreement between member states and internal bureaucracy.

Make no mistake, the US and UK economies will come out of this mess years before the Eurozone does, and their ability to direct FX movements to a greater degree thatn the ECB will prove vital.

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http://www.marketoracle.co.uk/Article12442.html

Big swings in USDX (dollar index) and gold last Thu/Fri as the bond sales were digested.

It's squeezed between a falling trend line and horizontal support at 78.30

Whichever way it breaks could be big and will impact everything else.

Charts in the article..........

I'll believe it when I see it.

I think a dollar collapse is a little way off just yet

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Forgetting the TA side of things for a minute, it strikes me that both the US and UK have been very smart at keeping their ccys where they want them in terms of relative weakness to the Euro.

Recent history proved conclusively that the FX market cannot be influenced directly by CBs - however, a nation with a free floating ccy can send the appropriate signal out at the right time and try to influence the FX market that way.

IMO, the US and UK are happy to see their ccys at these levels against the Euro, and are counting on the ECB's complete inability to counter this, due to lack of agreement between member states and internal bureaucracy.

Make no mistake, the US and UK economies will come out of this mess years before the Eurozone does, and their ability to direct FX movements to a greater degree thatn the ECB will prove vital.

Agreed.

It's starting badly v sterling and Euro and is now under 78.30. So we have to see if it gains momentum here or we see a big reversal the other way - which is always a possibility.

http://www.weblinks247.com/indexes/idx24_usd_en_2.gif

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http://www.marketoracle.co.uk/Article12442.html

Big swings in USDX (dollar index) and gold last Thu/Fri as the bond sales were digested.

It's squeezed between a falling trend line and horizontal support at 78.30

Whichever way it breaks could be big and will impact everything else.

Charts in the article..........

The drop in value of the dollar was seen as a sign of recovery by many commentators last week.

The logic being that as the financial system recovers and the threat of currency collapse diminishes there is less need for a safe haven currency.

The fact that gold has done very little would support this theory.

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