We may be seeing an interim top on the US dollar index, which is no doubt expected to see pressure from the stimulus plan and the Obama administration’s bank bailout 2.0 that is expected to be revealed in the weeks to come. The US dollar index appears to be making a descending series of highs. If the pattern continues this could signal the next wave down.
Watch the foreign exchange markets, as the US dollar could be bound for a correction soon. Possible trades include going long Canadian dollars, Australian dollars, Swiss francs, Gold, Silver and hedging by shorting the GBP Sterling.