The dollar is forming a bullish ascending triangle but with a bearish divergence on the higher lows. Not very clear, but if it can get back above 85.85 resistance, shorts should be careful. It's a tough call and momentum is hard to come by either way. This is not making life easy for gold traders who are now facing falling oil prices which they must balance with an uncertain currency outlook. Inflation is still a risk, but the Feds are in no hurry to act, at least for now. Bonds are probably the best cue at this point.
This entry was posted
on Monday, October 30, 2006 at 11:00 PM.
