Since the US Dollar put on such a big move in such a compressed period of time (+8% in a month), it has the potential to correct expeditiously. Today the US$ Index is down 94 basis points at 76.22, which is the biggest down move we have seen in weeks. Immediate term support was at 76.57, so that line is broken. Next stop is 75.70, then we have the more meaningful support line at 74.17. If Bernanke panders to the easy money crowd tomorrow in Jackson Hole, this move down in the US$ and coincident re-flation of crude oil, gold, etc. will continue.
- US$ Support is way down at the $74.17 level