DXZ09 – December Dollar (Last:75.130)

Various news sources reported last week that the sovereign banks of the world were intent on supporting the dollar, so worried have they evidently become that the U.S. currency’s weakness will kill their already frail export economies. With the dollar falling anew anyway, the question is  whether it may have become unsupportable — and what a pity that would be, since it would be the beginning of the end for the global financial system. As of Sunday night, weakness was eroding the last vestige of last week’s sharp but probably gratuitous gains, challenging the central banks to put their money where their big fat mouths are. If they’re planning on a support operation, we’d suggest using the Hidden Pivot support at 74.625 to pop a short squeeze. Any lower, though, and the futures will be warning of the futility of trying to get a dead duck to fly.

Tagged as: December Dollar, DXZ09, Forecast