Submitted by Morris Hubbartt:

For several weeks, my US dollar analysis has been focused on daily charts. The dollar’s current counter-trend move has not taken the price above 80.50. I think the rally is ending here, and a new decline is about to begin.   My focus today is on the larger picture portrayed on the weekly chart.  Here, 80.50 is also a key level.
Since 2005, the dollar has meandered aimlessly between about 70-90, creating the appearance of a cork lost at sea.   Now, a substantial breakdown seems to be occurring.  Oscillators are continuing to “head south”, intensifying the long-term downtrend in the world’s reserve currency.   

In particular, please note the action of MACD, which is producing a fresh sell signal.  Each high point attained by MACD is lower than the previous one.   The chart is covered with technical non-confirmations, suggesting the dollar may be ready to tumble.  [Read more...]