Friday, November 20, 2009
We're still seeing an incredibly bearish overall trend in place. Note that we are still seeing a trend of lower highs (A) and lower lows (B). Also note the bearish orientation of the EMAs (D) -- all are moving lower and the shorter are below the longer.
However, there is still the possibility of a double bottom emerging (C). Note the momentum increased on the second bottom and the RSI printed a higher total. Fundamentally, it's still very difficult to see what the catalyst for a rebounding dollar would be. The US is printing tons of debt and our overall interest rates are still very low. While we have printed a stronger GDP, the economy is still on shaky ground.