Pre-open:
Early May and early June saw a dollar double top at 73.90. We are currently at 73.50 and bulls are hoping for a triple top breakout if we get there. Right above that we will have resistance at 74.27 followed by the all important long term downward trendline resistance at around 74.50. But first things first, dollar bulls will need to break out above 73.90. It seems the entire media has decided to take Bernanke and Paulson at their word and that we should expect a resurrected dollar to come to the rescue of oil shorts. Until it does, I would keep some tight stops on your EUR/USD short. It's not game over quite yet, we are still in that 1.53/1.59 range. And that goes for the knee-jerk gold dumping as well. The March high does look like a blow-off top in gold, but as long as we hold the old all time high from a few decades ago at 850, I would not count the metal out.
Early May and early June saw a dollar double top at 73.90. We are currently at 73.50 and bulls are hoping for a triple top breakout if we get there. Right above that we will have resistance at 74.27 followed by the all important long term downward trendline resistance at around 74.50. But first things first, dollar bulls will need to break out above 73.90. It seems the entire media has decided to take Bernanke and Paulson at their word and that we should expect a resurrected dollar to come to the rescue of oil shorts. Until it does, I would keep some tight stops on your EUR/USD short. It's not game over quite yet, we are still in that 1.53/1.59 range. And that goes for the knee-jerk gold dumping as well. The March high does look like a blow-off top in gold, but as long as we hold the old all time high from a few decades ago at 850, I would not count the metal out.
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on Tuesday, June 10, 2008 at 6/10/2008 07:36:00 PM.
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