$USD Price Action
posted Feb 25, 2004 at 09:14PM
From the capitulation of Citibank, to the oversold technical nature of the USD..all the makings for a countertrend rally of strength are in place. So far though, it has not shown up in the price action, which is an overlapping and clearly corrective mess.
Will the USD need addtional outside help over and above that of the Japanese? There is talk of European rate cuts, even direct intervention. The boost may be indirect depending on the renewed version of the Washington Agreement covering central bank gold sales. I have read articles on CBS marketwatch that money supply growth has been garroted, despite new "accounting" procedures.
You really can't know. That's why one should pay close attention to the market through charts
For now, I am of the opinion that the future will see a bias to the upside for the USD and golds under continuing pressure.
Some excellent articles on gold and the USD can be found at www.freebuck.com