US $ accelerates Higher

With the new Lifeline Abu Dhabi providing a $10 Billion bailout plan for Dubai led the financial and stock market investors to shift back from negative to positive sentiments. That triggered the US dollar to rally back to the 77.40 high price level as shown in the daily chart of the USDX on the right hand side of the blog.

This fundamental report was the catalyst to fuel higher volumes for the US dollar ever since the low of 74.21 at the beginning of the month of December. It was clear that after the end of the month of November; the US dollar entered a phase where the re-adjustment of rates were being made. The initial low volatility on the USD/JPY after touching the 84.80 last thanksgiving day during the Asian session towards the American sessions.

This was the indiation as a price signal and based on the price parameters of the other foreign currency together. the market view vol. 29 outlook stated this analysis. Pls. refer to website on MarketView tab at http://megatrade101.com/

The EUR/USD is now working at the 1.4553 which came from a high of 1.5143. The major correction was obvious not only for the currency rates but rippled to the Gold market. Although, we did pointed out that the 1st objective was $1,250.00/oz for Gold since September. And emphasized it again since the gold prices when adjusted for inflation vs. the Stock market at or around the 10,000 levels +/- should be at those price. It was close enough when gold touched the $1,226.38 high and now is currently working at $1,114.63 as of December 15, 2009.

A continuation of the USD to gain towards the 1st quarter of the year 2010 is still sustainable as long as the volumes would warrant the market towards the end of the year and the 1st month of January. Thereafter a correction may occur. As we have stated before that a major correction does occur within a major trend.

Happy Holidays to all !

Good Luck and consider taking a holiday trading break as we would.