Posts Tagged ‘deception’
Alert - 10 May 2009
The US Dollar Breaks Down
Last week the US dollar dropped 2.7% against both the euro and the Swiss franc. The dollar fell 2.4% against the basket of currencies comprising the US Dollar Index.
The dollar has been in a bear market rally since last July. Last weeks decline is further evidence that this bear market rally has ended, which is clear from the following chart.
http://goldmoney.com/en/images/commentary-images/commentary-charts/alert_2009-05-10a.jpg
The last bear market rally in the US Dollar Index topped out on November 16, 2005 at 92.33 (green dashed line). The current bear market climbed to only 89.11, well below the previous peak, which is a clear sign of weakness. The pattern of lower highs therefore remains intact, confirming that this index is still declining within a long-term downtrend.
Importantly, we can see that the US Dollar Index has now broken down from the uptrend channel marking the present bear market rally. Then on Friday it easily knifed down through its 200-day moving average, currently at 83.01. Next support for the index rests around 80, which marked the December 2004 low (red dashed line).
It is too early to say that the US Dollar Index is headed for a new all-time low. It may be that this index is just moving into a broad trading range, say, between 89.11 and the black dashed line. After all, the euro and other currencies that make up this index are not in much better shape than the dollar. In other words, the purchasing power of all national currencies is being inflated away.
http://GoldMoney.com/en/commentary/2009-05-10.html
Duration : 0:3:20
Interview with Bill Murphy of www.GATA.org and www.LeMetropoleCafe.com
Duration : 0:7:39