The US dollar index chart: the fight to hold 76

It's the whole waxball right now. Make sure it's front'n'centre on your trading screen, too.

The USD got as low as 75.76 this morning (I think) but has crawled back over 76 again. The above chart is the December futures variety, 15 min bars, cos it's a better way of gauging (the futs run more volume).

Will 76 hold? Will the greenback laugh in the face of its naysayers and refuse to die? Will it snap down to the next clear resistance point of 72? Time will tell.........

The US dollar index weekly chart

This is the only one that matters, as right now the rest of the financial and trading world is revolving around the greenbacks travails even more closely than it usually does.

Click to enlarge

Otto sez: I expect the USD to bounce off the current levels and move back up through 78. Time will tell whether that call is yet another OttoFail™. DYODD, dude.

Chart(s) of the Day

Well, it looks like I'm going to get the chance of SLV under $12 after all. I thought it had slipped away from me. Here's the Gold:Silver Ratio, which is an altogether smarter way of tracking silver than its price chart.

(click to enlarge)

The USD has just broken 80 (80.15 to be exact), and the orderly piling into T-bills should have its flipside soon. If the dollar reverses from here it'll form another nasty twin peak. That reversal should see PM revalued and Otto slightly richer. All we have to do then is suffer the goldbugs shouting "I told you so" about their personal zero-sum games (yeah I know, I'm getting as repetitive as they are. I'll now STFU).

(click to enlarrge)

Update: Oh whoosh city, the USD is now at 80.60. On that chart above that's the peaky peak peak of the last peak. I'm now looking for $11.5 for SLV rather than $12. Hey...today might be a lot of fun...it's about time I bought something.

Let's be clear about the USD; this is a ST move. The bailout package or whatever it's called is extremely bearish for the currency over the medium term. I'm still expecting USD to revisit 72 or so. OK, enough non-LatAm stuff...let's get back to business (cos it beats watching those miners sink again).