We don’t look at forex charts too much, so let’s break tradition and look at three right now.
First up is the Euro versus USD. It has pushed above its long-term descending channel, suggesting that the US dollar may be heading for 1-ply toilet paper status. I mean, if the European Union has it together more than our once-great Republic, that’s pretty sad.
A real eye-popped with respect to the demise of the dollar is the USD versus the Chinese Yuan. Just look at that trendline failure (very subtle suggested by the giant red blob). It’s been slip-sliding away ever since.
For me, the most interesting chart is the USD/JPY, which has been relatively strong in recent times. If precious metals are going to have a fighting chance (remember, they have sucked out loud almost every day since August 6th of last year), then chart needs to turn lower. Considering how many trillions of dollars are being vomited out of the Eccles building, perhaps this is a likely outcome.