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Double top in USD?

20 March 2009

Just a quick technical note:

See http://stockcharts.com/charts/gallery.html?$USD
The rise in the dollar from August 08 until now seems to be failing with a decline from a double-top.  This would confirm the move up as a bear-market rally indicating that the dollar has a long way down still to go.  A falling dollar would push gold up as gold is the antithesis of the dollar.

Also, http://stockcharts.com/charts/gallery.html?$GOLD
Gold is completing a long term bullish cup-and-handle pattern (cup:  March 08 - 22 Feb 09).  If the price of gold in dollars breaks convincingly above $1030 to new highs, this would indicate a strong move upward towards $1250/oz.
Gold in non-US currencies is unlikely to rise to the same extent if the dollar is falling.  Commodity stocks should respond well to a rising dollar price for gold.

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