Tuesday, November 23, 2010

The US Dollar

As you know the dollar has an inverse correlation with most commodities, including the P.M.s and equities. I've ben talking about these wedges with divergences being some of my favorite patterns.

The daily chart of UUP. If the chart closes anything like it looks like now, I'd guess that we are out of the breakout zone of volatility these charts have been seeing and the dollar or UUP more specifically should have an upside target of $25 or so.

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