Spot dollar (DXY) made its first close above the 5 dma in 8 trading days. It's a doji, somewhat ambiguous. Support was found at 23.6% projection August (79.45). That will be critical going forward. Should we move back above 79.80, oil and gold would come under pressure. The reverse holds true, of course. Right now, it almost seems unsurmountable, but markets have a way of flipping things around when everyone is leaning the same way. All will depend on the reaction to the Fed cuts. My guess is 25 basis points will support the dollar, 50 could drive it down further. The flip side is that any rate cut is help for the economy, thus supportive of the dollar.
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on Friday, September 14, 2007 at 9/14/2007 08:31:00 PM.
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