To 321gold home page

please click banner to support our sponsor.
Home   Links   Editorials

U.S. Dollar - Quick Note

Technical observations of

Bob Hoye
Institutional Advisors
December 13, 2004

Now that we have the upside reversal in the US Dollar Index (82.60) it is time to talk about the characteristics we can anticipate going forward. The initial rally should last four to six days, kiss the 20-day exponential moving average and bring the RSI(14) up to 52 +/- 3 points. Today, Friday December 10th, is day four in the rally, prices are above the 20-day ema and the RSI is at 47.50. Look for a more choppy trading pattern over the next few weeks.

If prices can manage to close above the standard deviation band (20ma, 2%) within the next two weeks then the likelihood of prices making a new low in the coming months is minimal. An upper target of 90.50 is quite possible by the summer.

However, a rally which is capped at the band will most likely result in a new low within the next 8 to 11 weeks before a sustainable rally can occur.

Bob Hoye
Institutional Advisors


The opinions in this report are solely those of the author. The information herein was obtained from various sources; however we do not guarantee its accuracy or completeness. This research report is prepared for general circulation and is circulated for general information only. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. Investors should note that income from such securities, if any, may fluctuate and that each security's price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily a guide to future performance.

Neither the information nor any opinion expressed constitutes an offer to buy or sell any securities or options or futures contracts. Foreign currency rates of exchange may adversely affect the value, price or income of any security or related investment mentioned in this report. In addition, investors in securities such as ADRs, whose values are influenced by the currency of the underlying security, effectively assume currency risk.

Moreover, from time to time, members of the Institutional Advisors team may be long or short positions discussed in our publications.

321gold Inc