Thursday, January 6, 2011

DXY doing major technical damage (Forex News by Forex Live)

Written by Jamie Coleman
January 6, 2011 at 16:10 GMT 
The dollar index has broken its seven month downtrend as well as resistance drawn off a series of recent tops. The next hurdle is the area of resistance around 81.18.
1-6 dxy

















Dollar strength weighing on commodity speculators again

Written by Jamie Coleman
January 6, 2011 at 16:28 GMT 
The stale notion that the dollar is set to collapse and commodities will soon become the coin of the realm is being undermined once again today. The furious dollar rally of recent sessions has pushed gold down more than $50 this week, oil id down $2 to 88.35 and the CRB is down a more muted 0.65% (grains are a chunk of the basket, propped by the Aussie floods…)
Aussie is easing further today, falling to trend lows at 0.9934. CAD is weaker as well after very poor PMI data adding to the commodity-induced woes, now at 0.9980.
Commodities may head to the moon on unending Chinese demand; I just don’t think a dollar collapse will be a major catalyst for that marginal extra oomph (to use a technical term) that specs have been banking on. Supply and demand may once again be the key to market moves, not every twitch in the value of the greenback.

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