FOREX TRADERS

[ElderWolf]

The dollar broke above the 65 week ma which represents the major trend. The longer we stay above that bold green line, the more likely it is we've seen a major trend reversal. In my opinion, the money supply is dwindling faster than we can create it. However, keep in mind this strength is only relative to other currencies. Once the Chinese figure out their standard of living will increase significantly by allowing their currency to strengthen, or...once they decide to stop buying our debt to start pouring that money into gold, our currency will likely begin the downward spiral once again. The dollar and gold relationship is almost always inverse. While lately the dollar has been going up WITH gold...gold is moving up against almost ALL other currencies. I anticipate the dollar will likely correct. However, as always, I await confirmation of this both fundamentally and technically before jumping back onto the dollar bear boat. Once the US begins to default on debt, they'll start printing money like there's no tomorrow. Also, using demographics and spending patterns of the baby boomers, it's very highly unlikely that consumer spending will pull us out of this recession as in times past. It'll be several years before we see REAL signs of life.