Forex forcasting metatrader indicators,

US Dollar - Time For a Real Rally?

There is plenty of speculation as to what Jean Claude Trichet will do with the Euro zone's interest rates. Depending on who you listen to the ECB may move rates up, down, or keep them steady. To his credit, Trichet keeps us guessing with statements that he is concerned about inflation and slowing growth.  Hypothetically - All it would take is a clear policy statement from JCT of staying steady - or for a shock a mention of dropping rates - and the US dollar will be able to roar back.

Pound Predictions?

Looking at the Weekly chart (above ckick to enlarge) for the Pound Sterling vs. US Dollar you can see that a Head and Shoulder pattern may be completing if price was to drop to the 1.9100 range. This would complete the right shoulder. If that happens - you will have a bounce or break off the supporting neck line. A Dollar Rally will be confirmed if this neck line is broken.

US Dollar Poking Holes in the Swiss Cheese?

The USD-CHF (above) is usually a good indicator of Dollar Direction. The chart above shows the 100 SMA has held as resistance quite well - but a solid break above that line - would have it also break above the current up trend channel. If that happens, it could signal a real Greenback rally against  the British Sterling and the Euro.

Meanwhile Back in the Darkened Gold Mines

Gold - Giving Traders the Shoulder - Heading Lower?

While Oil is posting lifetime record Highs, and the US Dollar shows a lack of direction, Gold is showing a chart pattern that might be bearish. The Daily chart of Street Tracks ETF GLD shows a Head and Shoulders Pattern with a broken neck line. The neck line coincides with the key 61.8% retracement level support level making this line quite significant if it is violated again. The 200 Period Daily SMA is currently at just about 81. GLD typically trades at 1/10th of the spot price.

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