Wednesday, April 27, 2011

USD - WHERE TO NEXT ?

Here is a USD update from Graham Summers of Gains Pains & Capital.com


April 25, 2011: Graham Summers’ Free Weekly Market Forecast (China Dumping Dollars edition)



His analysis is always insightful and he is always willing to tell it like it is.



The USD has clearly been under pressure recently. It is oversold at the moment and even though the Bullish Bear has a long term bearish view on the USD, I continue to believe that the current rally in the EURO and the GBP will soon see a reversal.

The Euro and the GBP have their own issues as well! ...facts that the market is currently ignoring!

Will the USD take out the 2008 lows? Watch this space!



Gold and Silver have had a fantastic run, although Silver prices pulled back quite sharply this week after almost reaching $50.

As you can see from the third chart, Silver had a lot of catching up to do, and since mid 2010, it has caught up with Gold quite swiftly.


I continue to advise caution on Silver prices, as prices have already risen significantly and a further pullback over the near term can be expected.







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