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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (10016)	8/8/2008 11:06:46 AM
From: ItsAllCyclical	Respond to of 71456

I agree LT on the Dollar, but so do most of the good savvy traders at this pt. Euro has it's own issues and as always it's about risk/reward. I don't think you have to be ST trader to want to avoid 6 month+ corrections. Right now the Dollar is benefitting from the following: 1) Asian CBs desperate to hold together their investments in USD and keep their own currencies low 2) Short covering 3) Desire of all major CBs to have lower world-wide commodity prices. Best method IT without hurting global economy is to have a higher Dollar. 4) Euro showing definate IT cracks TA wise and FA at these levels. Relative interest rates still favor Euro, but direction of interest rate differential favors Dollar here IT (most likely). 5) Deflation, deflation, deflation 6) World economy slowing down should favor Dollar on a relative basis. Sentiment wise Dollar still climbing a wall-of-worry IT. The vast majority of gold bugs still in utter disbelief that the Dollar can rally here let alone have an IT rally. All the more reason why it'll continue. Thanks for the feedback.