The US Dollar
posted Jan 14, 2005 at 06:21PM
The dollar is still on short term buy mode. The second consecutive weekly close over the 50dma is bullish.
A stab to the 85 level is not unreasonable. How it deals with that resistance area will tells us whether this is just a correction, or the start of something more serious.
I would interpret a 40/65 week moving average cross-over as confirmation that a serious counter-trend correction for the dollar is in store for 2005, with a deflationary atmosphere influencing all things paper.
This TA assumes that all else remain the same...and that is not a guarantee. For example a State of the Union Speech that makes it apparant that an aggressive posture towards Iran is in the works, can stop the dollar rally in its tracks.