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TFC Commodity Trading Forum

Re: Long Term U.S.$ Chart/Lee

Most markets trade inverse to DX. Gold too but often both the U.S.$ AND Gold are chased and bought as safe haven markets when the world 'appears' to be going to hell in a handbasket. But see DX soar off its 200ema straight up for a month now. No coincidence that the stock markets and Crude etc have been trading inversely as they typically do. No surprise there. DX doesn't ever just go straight up. It is often volatile and whipsaws markets a lot on its zig zag higher. Looking at that Weekly chart you can see the bullish potential to at least 89.70 which is the 2009 and 2010 highs. That is dramatically higher than the present 83 level and would trash inverse markets. BUTTTTTTTTT it wont go straight up to that level. Price is presently overbought and will likely pullback even further. Just look at most inverse markets and see how far away they are from their 20emas. Price is like being attached to the 20ema with a rubber band and most everything is due for a sharp snap back as price always comes back and tags home base in its zig zagging trend.

As far as what the politicians want to be re-elected I would think a 'steady' stock market with positive employment numbers would do the trick. And a lower U.S.$ would do this nicely I would think. DX could pullback a lot and still be in an uptrend on the Weekly chart. So a falling but sideways choppy DX over the next 5 months would solve a lot of problems for them I would guess. But there are a lot of variables with it all for sure. No simply quick fix answer. Lower interest rates aren't helping people buy or refinance their homes in the U.S. if they don't have jobs or are under employed or simply don't qualify for a mortgage. So that isn't the answer. A lower DX would also increase manufacturing and encourage buying U.S. goods rather than foreign goods. The Canadian government just increased dramatically the dollar value of what Canadians can bring back from the U.S. after 24 and 48 hours from the U.S. So your border towns and cities should get a huge boost from that as Canadians swarm the U.S. border shopping centers and spend billions of dollars per year there as Canadian companies screw Canadians to extreme. I guess just like the scorpion stinging the frog while swimming across the pond applies to them. "They just can't help themselves". Target is opening up a couple of hundred stores across the country here starting soon. That should shake up a lot of overpriced Canadian companies.