US Dollar Rally – Counter Trend Bounce Price Targets + Resistance Levels

by Olivier on January 22, 2010

The markets are showing the first cracks. Technical damage is not huge as of yet and the jury is still out if this is the top of the 2009 bull market run or if buying the dip will be rewarded once again. Still, technical damage has increased and so far it is also dragging down everything gold and silver related. There is broad selling with very few pockets of strength left. This is starting to feel like going long is indeed fighting the tape. Don’t be the salmon trying to swim upstream.

That being said I’ve updated the US$ Dollar chart and the most obvious resistance levels are located around the 81 and especially the 83 area.

US$ Price Chart with Resistance Levels

Up-to-date USD$  US-Dollar chart on my public list.

As I’ve stated in a post at the beginning of the year, above all stay open-minded for developments that could hurt traders most. A worst case scenario for gold bugs would be a vicious US$ Dollar rally trapping traders. I am still in wait and see mode and am closely watching my two open positions I referred to as ‘Test Balloons’ yesterday.

Being right and making money are two completely different concepts.

Have a great evening!

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