Friday, September 9, 2011

Good Ole US Buck

Have to blow the horn here a little....
if you'd seen this  ....Signs of Life , from Sept 1, then today's action in USD would not be a surprise.
Headlines like this out there to explain the move.

GERMAN DEPUTY FINANCE MINISTER ASMUSSEN TO TAKE STARK'S PLACE AT ECB - SOURCE....and
Commenting on Stark's departure from the ECB board, Marco Bargel of Postbank says: "Evidently there are more and more ECB council members against the controversial purchase of bonds. There is certainly a bit of frustration involved. Stark's resignation could be seen as a weakening of hardline monetary policy camp."

Not to mention rumors of  Greece defaulting over the weekend, which even if not true, is signalling "final countdown".

Print baby print...Euro's for a change.
USD Active Mo. Weekly
 click to enlarge
Approaching a 50% retrace point. Note USD is above the 100 week moving avg.

Daily
There is as yet no negative divergence on the 14 RSI (not shown).
USD is above the 200 day moving avg.
Cluster of resistance obviously between 77.17 and 77.27. It will likely need a pause before it can penetrate that level, still it will be very interesting to see how much strength it has as it approaches/ takes it out / fails etc.

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