Sunday, January 25, 2009

Possible US Dollar Top

The US dollar may be putting in a double top to its secondary rally. The recent gold price and silver price actions have been unusually strong.

It is up against the neckline of its previous top. And, Friday's price action made an almost upside down hammer which could be the right hand top of a quick double top. We will see. If it turns out to be the case, the declining US dollar will be a wind at the back of the gold price and the silver price.


Anonymous said...

Is it the euro's fall and then the British pound fall that is keeping the dollar up on the narrow double hammer top? This may be where gold and silver is powering through.

Anonymous said...

They can be to some extent, but, I have no way of knowing for sure exactly what the forces are that make the prices in market nor to what extent they enfluence prices. I can just make guesses.