Wednesday 18 May 2011

Massive US Dollar Rally About To Begin


DXY should rally to at least 88

Very high probability that DXY has bottomed and is now about to begin a multi month rally that should take it to 88-90


Most likley that EUR has topped at 149
Exoect now the EUR to head lower
Most probable target is 118



GBP is showing a double top formation
With DXY bottom very likley - GBP has now topped
Expect GBP to head to 140 or lower



It is alos very likely that JPY has bottomed as well
Expect JPY weakness against USD
Most likely that JPY will head to 90 - 100 range
This is a multi month rally



CHF has been very strong
It has also most likely bottomed on the chart



Expect CAD to be weak against USD
It should move back to 2008 leevls about 1.2 or so


AUD has been very strong
I think it has peaked at 110
Expect strong USD weak AUD
It should head to 0.7/0.8 territory

Silver
Huge double top formation seen here between 1980 and 2011
I am very sure that Silver has peaked for now
As I have said before as well - Silver should head to 8 from its peak on 49
It may even go below 8 - let us see

These are all multi month trades
If you have a trading horizon of 3 - 5 years - then this would be the thing to look at

It is now time to stay in USD and get out of the above currencies and Silver


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