US Dollar ... What the …?
Brian Bloom
The following chart shows a clear reverse Head and Shoulders formation with a target of 100 with the clear neckline at 90 having been broken to the upside (Source: http://quotes.ino.com/chart/?s=NYBOT_DXY0&v=dmax)
The above is happening in the face of a RISING gold price, and the Goldollar Index - courtesy Decisionpoint.com is also showing signs of upward momentum - with a breakaway gap at the 4000 level
Conventional Wisdom has now been thoroughly trashed. Gold is not being perceived as an alternative to the US Dollar, and the Us Dollar is not "collapsing" as a result of the massive deficits.
Neither is the Dow Jones showing signs of fear - with the DJIA index now "peeking" through the upper resistance level of the Diamond formation to which I drew attention some weeks ago. (Note: Too early to call this a "buy" signal, but sure as heck is pointing to something unusual happening.
Conclusion
We need to start thinking outside the box. Something is happening out there that cannot be pigeon-holed using conventional logic.
Brian Bloom
Australia, November 12th, 2005
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