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USD index due for reversal
The US Dollar Index is due for a reversal of the downtrend from its 52-week high in June 2010 on a backdrop of technical and fundamental factors…
Technically, the chart says it all…
Source:stockcharts.com
US equity market charts have broken down … US equities indices are inversely correlated to the US Dollar… hence a weakness in equities will push the US Dollar higher…
Fundamentally…
- weakness in Euro area due to the omnious soverign debt crisis
- downgrades of sovereign debt and Euro area bank debts
- earnings of US companies have been sub-par to say the least with mostly lower guidance for coming year…
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July 31, 2010 at 9:21 AM | #1Short term uptrend in Gold broken, Correlation to USD & more | simple financial analysis
