Friday, December 7, 2012

The Rising US Dollar Effects

The US dollar reversed its decline and gathering strengths. Looking at the DXY (US dollar index) chart, this index could be heading toward 81.75 from the recent low near 70.50.

Conversely, the Euro started to decline from its recent high 130.13 toward the 127 level. If it fails to hold 127, it could fall to the previous pivot low near 125.90.

Similarly, the price of crude will fall as the US dollar rise. From the chart for the crude ETF, USO could drop to 29.50, where the spot price for light crude will be near 78 per barrel.

Finally, the price of gold could also fall along with other commodities prices. The ETF for gold, GLD could drop to 162 that mean gold could be less than 1680 per ounce. If it cannot hold the 1680 per ounce, it could drop to 1620 per ounce or near 157.50 for GLD.