Wednesday, January 11, 2006

US Dollar and the Eurocurrency

Here are hourly charts showing pit and electronic trading in the cash US Dollar index and in the March Eurocurrecy futures.

I think the eurocurrency will rally to 122.80 or so and then resume its bear market. It should be trading below 115 in two or three months.

The dollar index will probably drop to 88.20 and that will end the current reaction within its bull market. The next move will take it above 95.

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