Tuesday, March 3, 2009

Is the US Dollar a Black Swan?

Is the U.S Dollar a Black Swan? The consensus bet has been that the U.S Dollar would fall as the trillion dollar stimulus and monetary base spike would dilute the value of the USD. That makes sense however the break down in other currencies has put a bid under the US Dollar as a safe haven. The spot USD Index pierced through resistance at the November 2008 highs. The trend is your friend but watch out for unexpected catalysts that could reverse the trend (reflation/CRB currency bid). If it can sustain it's run here the next resistance level is around 92-93 from the highs made in 2005.


US Dollar Index Spot (Fxstreet.com)

Dollar Index March Future (Optionsxpress.com)


Dollar Index June Future (Optionsxpress.com)




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