With the failure of the Dollar to break through resistance that I mentioned in the Metals section above, currencies should now find it easier and easier to rally against the Dollar. Rumors of China revaluing the Yuan again have yet to come true but I do expect this any day now.
Euro: Well final support on the Euro has held so far and we should be on our way back to the mid 120’s by the end of this week.
US Dollar: Failure to break through resistance could have the Dollar back to the mid 80’s very quickly unless Secretary Snow tries to slow the fall.
Swissy: So the Swissy found 131.00before pulling back which is opposite what I was betting it would do. Buy this pullback with confidence. Continued strength in Gold will support the Swissy going further.
Pound Sterling: The pound looks strong and support at 175 has thus far held. Again there may be a test of support at 173.00 but that would be and even better buying opportunity if it did test that level.
Yen: The Yen seems to have reached a temporary top and could now pull back down to 112 this week.
Derek Frey
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