US Dollar Daily Chart

US Dollar daily chart shows steady weakness as Trichet takes a hawkish stance on the euro at the expense of the dollar. The Portugal woes should surface as March moves along. With their bailout needs considered, the euro should lose some of its recent buoyancy. That timing should be in concert with the dollar index finally receiving some support. The dollar weekly chart is positively diverged now and the daily chart is as well here.

Over the last month, however, the stochastics cannot get any more buried in oversold territory. By all indications, the dollar should make a comback from the green circle area, rumors of its demise are greatly exaggerated. Interestingly, the ADX was confirming a strong downward trend in October but for the recent selling action, no strong down trend exists. Any negative news out of Euroland should immediately pop the dollar. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.