Dollar Crash? - Support GONE

The US Dollar has broken under 88 today, its final support point at 88.57 its 200 DMA. We still have support points at 86.02, 81.28 and 80.39 - let's watch these in the months ahead. 80.39 says flee if it is broken and fast. That 80.39 was the 1996 point the dollar bounced off - a longer term double bottom.

The rally channel is gone, it is down from here near term. A test of 80 seems a given - the faster it gets there and if it holds 80 is the question.

Now we have to ask is that bullish for US equities as it makes them less expensive for overseas investors or is it bearish in that it says the US government may have trouble attracting interest in those willing to buy its debt. We shall see.









West