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Short-Term Trends in U.S. Dollar Index
and Euro Set to Reverse

Bob Hoye
Institutional Advisors
Posted May 21, 2010

The U.S. Dollar and Euro have achieved excessive technical readings on a daily basis as of May 18th. Previous examples saw significant price reversals within four trading days and moves back to the 50-day exponential moving averages within one month.

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Gold prices also react in a particular fashion around these signals. There is an expanding downup- down pattern over ten weeks. Initially prices drop for a few days (A), then rally into a window of five to nine trading days (B) after the signal. Lastly, a deep correction pushes to test or make a new 10-week low (C).

Pattern is more important than price

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May 19, 2010
Institutional Advisors

Hoye Archives

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