Longer Term The U.S. Dollar Looks Poised to Move Much Higher

The dollar index pulled back from its recent highs and fell to a five day low. However, this index is still significantly above the original breakout point of 76.10. We were somewhat disappointed that we did not see further upside action, as that was blunted by the potential rescue package for Europe.

Longer term this market looks poised to move much higher. This index is coming from a large energy field that is capable of carrying it much higher, possibly up to the $80.00 – $81.00 area. Intermediate and Long Term traders should maintain long positions with the appropriate money management stops in place.

The December U.S. dollar index closed down 79 points at 78.27 today. Prices closed nearer the session low again today on profit taking from recent solid gains. Prices Monday hit a seven month high. The bulls still have the overall near term technical advantage. Prices are in a four week old uptrend on the daily bar chart.

Monthly Trade Triangles for Long Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short Term Trends = Negative
Combined Strength of Trend Score = + 75


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