US Dollar Bull: Unstoppable Ascendancy in Super Bullish Territory
Pretty much what we stated has come to pass. The dollar rallied strongly and traded well past 8100. It is within striking distance of putting in a new 52-week high. The weekly trend is still positive, so after a bit of consolidation (not necessary, but it would be good), the dollar should be in a position to test the 83.50-84.00 ranges and eventually (unless the trend changes) rally all the way to and past 85.50. Market Update August 26, 2014
The dollar has hit our suggested targets in a relatively short period. Again, this shows that logic is not the right tool for the markets. Given our massive debt and the rate at which we print new dollars, the USD should be sinking. Instead, it is trading at new highs.
US Dollar Bull: Resolute Strength Sustains Super Bullish Stance
The dollar broke out quite strongly. On the very short-term time frames, it is overbought, and such a strong move usually is followed with a test of the former resistance zone now turned into support; this zone falls in the 81.80-82.00 ranges. It is also likely to run into resistance as it tests the former uptrend line in the 84.50-84.70 ranges.
The Euro is also highly oversold as it has taken a severe beating, so a relief rally is expected before it resumes its downward trend. The weak Euro indicates that the sanctions the EU is implementing against Russia at the behest of the USA will cause them more pain than the Russians.
The Euro’s plunge indicates how dangerous and short-sighted many of governments were to initiate sanctions against Russia. We are not taking sides here, but the noise the Western media makes is nonsense. Had warmonger peanut brain McCain and a few other brain-dead individuals from the EU not visited and encouraged the individuals in Maidan to revolt, there would have been no war today.
There is a “disconnect“ between the actions of the European governments and what the public seeks; the public is not so keen to engage Russia. We are already seeing cracks in this coalition. Europe will abandon America a lot faster than most expect. Russia has a powerful weapon, and that is gas. It can bring Europe to its knees by just cutting the gas supply. The next few months will bring about some fascinating and shocking revelations. Stay tuned.
The dollar should continue to soar to new highs, and this outlook will remain in effect until the trend changes. This outlook will remain in effect until the trend turns negative.
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