Submitted by Morris Hubbartt:
For several weeks, my US dollar analysis has been focused on daily charts. The dollar’s current counter-trend move has not taken the price above 80.50. I think the rally is ending here, and a new decline is about to begin. My focus today is on the larger picture portrayed on the weekly chart. Here, 80.50 is also a key level.
Since 2005, the dollar has meandered aimlessly between about 70-90, creating the appearance of a cork lost at sea. Now, a substantial breakdown seems to be occurring. Oscillators are continuing to “head south”, intensifying the long-term downtrend in the world’s reserve currency.
In particular, please note the action of MACD, which is producing a fresh sell signal. Each high point attained by MACD is lower than the previous one. The chart is covered with technical non-confirmations, suggesting the dollar may be ready to tumble.