Market Scheming

Wednesday, August 25, 2010

USD and how it fits

The USD is tied to everything, the price of all commodities, stocks, bonds etc.

Here is a picture of a daily chart of the USD

Today a touch of that 50 MA resulted in a pull back.  The MACD has dropped off a little, but the Slow Stoch is almost embedded which could lead to more upside.  I am expecting the USD to rally, if it can close 2 days above the 50 MA and hold that up trend.

If the USD doesn't rally then gold should continue to rise and I will be out of my position, i also shorted gold in USD with the expectation that gold would fall and USD would rally.  Today was a down day, however, with 4 days to the upside a pullback at the 50 MA sort of makes alot of sense.  So tomorrow will be interesting, we will see where the USD will end up.

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