The US Dollar

On January 13 I wrote the following blog post concerning the overall situation of the US Dollar:

In that post, I wrote that there appeared to be few if any signs that a severe US Dollar decline was impending.

However, the situation has changed.  When viewed from a technical analysis perspective, US Dollar seems vulnerable to a decline when viewed on at least the daily and weekly timeframes.

In addition, from a fundamental perspective, the actions we (as a nation) have been taking to “improve” our economic situation imperil the dollar.  These actions are almost innumerable, but certainly include ultra-low interest rates, large-scale deficit spending, and large-scale “money printing”.

As the following chart shows, from a long-term monthly perspective the US Dollar seems to have resistance around the 80 level:

chart courtesy of

On an “all things considered” basis I believe we are now at the point where the US Dollar price should be intensely monitored as it appears highly vulnerable.

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SPX at 1164.2 as this post is written