We don’t look at forex charts too much, so let’s break tradition and look at three right now.
First up is the EUR/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/CNY. 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 Aug. 6 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.
