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US Dollar Index 14-Year Chart
Daily chart of 14 years of cyclical developments in finance & politics
I always follow your appearances on Tv together with your comments on this site.
If you take the PPP of the euro it is overvalued by 15%.
Also as the MA50 is lower than MA1OO and lower than MA200 meaning that yet the trend is for euro/dollar down.
If euro will reach again the 1.4650 again don't you think that it will correct sharply lower after given all bad fundamentals of euro area and ECB policy behind the curve?
Regards Joseph
e-mail : mehold@dm.net.lb
I have been reading your articles and they are very helpful, they help me think outside the box. I have been studying Elliot wave which I'm sure your well aware of, and possibly what its saying about to the USD index and correct me if I am wrong is that the resent drop in the dollar is very short term. Its half way a zigzag pattern (5-3-5) and once its through with the A-B-C correction down up to somewhere around 76, we are going to see the final 5 wave up which should mature at the end of Q1 2009. Then from there we see the beginning of US dollar weaknesses like never before.
Regards
Muira
As I said on this site before, the next phase of major USD selling will emerge when equity market volatility abates and global demand creation gradually emerges to the benefit of oil. All these negatives you address are valid, but will not trigger dollar selling as long as stocks remain under pressure. One possible exception is for an e event risk such as i) Automakers are allowed to go bakrupt ii) Citigroup failes to obtain a lifeline. But i remain in favor of my best long term trade and that is long gold.
Ashraf
Are we not the most vulnerable to financial crisis because of our indebtedness re US treasury, corps. and individuals? What happens when OPEC goes to euros? or central banks have to protect their own currency and lose their appetite for treasuries, given our auctions for 20+B 10Xmonth?
Ashraf
I like your homepage, its very good and gives much insight.
Im only a beginner in studying the markets and I hava a question:
Youre price target in GBPUSD of 1,47 $ has been reached last week, but I pressume we are not done yet? What do you think, it could fall further?
Have you any thoughts on the Pair EURJPY?
Best regard
Jerome
Much of the action in GBPUSD depends on these 2 main factors ; i) further BoE rate cuts; ii) further declines in global equities. As loong as one of these factors is present (both will be present for some time), GBPUSD may drop to as low as $1.47 sometime in Q1 2009.
Ashraf
Do you think that the GBP/USD pair has reached a bottom or it has to drop further down, before a turn around, and what do think this bottom will be?
Regards
Hassan
Splendid analysis, that mean's if i want to sell AUD/USD Whether is the Relative
Currency Combination which level as the safe side or do you have any Suggestion.
Francis
very good chance gold will retest $650 before December. I expect notable gold weakness /dollar strength in November/December, before reversal in January.
Ashraf