To 321gold home page

Home   Links   Editorials

US Dollar to Extend Uptrend

Technical observations of

Bob Hoye
Institutional Advisors
Posted Dec 19, 2010

Following the daily capitulations in October, weekly Sequential Buy Setup on November 5th (resulting an ‘isolated low’) and bullish crossover of the 20-day over the 50-day exponential moving average in late November, the US Dollar Index has now found higher support in the rising trend. This week saw prices become oversold close to 50% retracement from the November lows (at the same point that the Euro retraced only 38% of its decline from November).

We have previously outlined the likelihood of resistance being found at the 55 and 89-day Bollinger Bands as the Dollar rallies out of lows. The 55-day caught the November 30th high. It would be normal for the next rally to achieve a move to the 89-day band, currently at 83.96.

(Click on image to enlarge)

Look for the 50-day ema and 100-day simple moving average to provide overhead resistance in the Euro.


Dec 16, 2010
Institutional Advisors

Hoye Archives

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 Ltd