Greenback Rally Strides On
My last post on November 18th showed the USD-CHF getting to a pinnacle point of decision as the chart showed a beautiful upward trend channel that was getting narrower and narrower – so a trend line break was immanent
Charts Past and Present
The chart above shows that the Dollar decided to break out to the upside vs the Swiss as the Chart below shows the EUR-USD continued its descent in the existing trend channel.
The USD-CAD took the highroad breaking out of a classic triangle formation and now pausing about 500 pips higher than where she stood two days earlier on Nov 18, 2008
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The whole greenback rally totally baffles me.
I understand the inverse relationship between the dollar and oil and I can only attribute the dollars runup to oils decline but with the american economy going down the toilet I certainly did not expect the dollar to increase against world currencies.
It seems to not make sense. While I am enjoying the trends and making some good money in the market, I still dont understand why the runup?
I would love to hear some reasoning behind it from economists or people in the know.
Thanks
Robert
http://www.huttoinvestmentgroup.com/