The US dollar index has dropped just below a major up trend line this morning that is formed by the Nov. 2010 and early Feb. 2011 lows. A breach of this line at around 77.19 would cause the dollar to drop to the next support level at 76.88 and then another up trend line kicks in with support at around 76.06. Just below that at 75.63 is the Nov. 2010 low.
If the 76.88 level does not hold, gold (GLD, IAU etc) will likely be at new highs. And that level is not far from here, because the dollar index is trading at 77.10 at the moment.
Beyond the US dollar, the US stock market is struggling. Every weekend my SP500 tracking newsletter is out and its FREE, so please subscribe below if you are concerned about where the stock market may go from here:
Standard Disclaimer: Remember, it’s your money and your decision as to how to invest it.
Copyright © 2011 by Wall Street Sun and Storm Report, LLC All rights reserved.