Monday, October 4, 2010
Uncle Buck - Weekly View
Today, as the dollar improves sentiment-wise with every bearish impulse (and every eurphoric impulse in the asset world), the weekly technicals weigh bearish toward the dollar. We have now closed two weeks in a row below the red neck line and six weeks at or below an important moving average.
Uncle Buck is at the first anticipated level of support, but there is no reason yet to believe he is going to reverse into anything stronger than a test of the breakdown. There are other very doable support levels down lower (not shown here). It is best to watch other indicators that when broken down or diverging, may give early hints about when US policy makers are going to be constrained from further dollar-devaluing activities.