Written By Basilio Chen

VN:F [1.9.16_1159]
Rating: 0.0/5 (0 votes cast)

The US Dollar has now broken up from its low base. Prices broke the 200MA on the daily charts with strong momentum.

As we said in our Long Term Study of the US Dollar, the could be the beginning of a multi-year rally.  (Don’t forget, the value over long term has been coming down – is all relative).

Since 2009 and then earlier this year, the US Dollar has attempted to rally coming back to its low base.  There is a good chance this time it will make a stronger move.  The main reason is because everyone is totally pessimistic about the US Dollar yet from all the major currencies and countries (like Italy, Spain and Europe in general which are in bad shape) is the less bad.