Tags: dollar | inflation | chart | downtrend

The Chart Says Tough Times Are Around the Corner for the Buck

By    |   Monday, 04 February 2013 07:45 AM

Those who don’t read charts don’t realize that the next leg lower in the greenback has just begun. They just know that it’s rallied for well over a year up until recently.

However, last July, the U.S. Dollar Index peaked out again and hasn’t looked back. In fact, it broke its uptrend line that it’s held for well over a year in early September.

Since then, it’s retested the underside of the former uptrend line and has failed once again by producing another “lower high.”

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But now there are other bearish technical signs emerging for the buck. When I look to the long-term, weekly chart of the dollar, I see that the moving average convergence/divergence lines have dropped below the zero line again. This doesn’t happen very often on these long-term charts. So when it does, it’s best to take note and pay close attention.

These lines began to produce negative readings back in November. When that happens, it means that there is a huge chance that a new downtrend has begun. So that’s further confirmation in addition to the trend line break and the lower high that the buck has produced.

In looking back over the past year, the greenback has now formed a negative chart pattern known as a bearish Head and Shoulders pattern. It began back in November 2011 and is just about to complete by breaking its neckline.

When that neckline (which is around 78.80 to 79.00 on the U.S. Dollar Index) breaks, look out below! That’s when the slide-off in the greenback will really pick up steam.

This move is just around the corner. I estimate that it’s only weeks to a month away (or less). Heck, if it came within days from now, it wouldn’t shock me.

All of the money printing from the Federal Reserve is finally taking its toll once again upon our currency, so make sure you’re prepared to protect your assets as a result.

I’ve got my Ultimate Wealth Report subscribers well-positioned. We’re invested in stocks that will benefit from inflation’s next rise and the dilution of the dollar. We’ve done this by investing in stocks that deal in commodities or stocks that benefit from foreign currency movements or the downward trajectory of the dollar.

Last year, we beat the return of the Standard & Poor’s 500 by a good margin and we didn’t even have inflation kicking up really well yet and the dollar’s next leg down hadn’t even happened. So imagine how well 2013 is going to be for my subscribers as this next slide in the buck unfolds.

You see, I don’t want our currency to be undermined. As a red-blooded American, it boils my blood to think what could happen to our currency. But I also know that the Fed isn’t going to quit what they’re doing no matter how I personally feel about what they’re doing.

CIA Adviser Warns of ‘A Financial Pearl Harbor’ (Be Prepared)

So what’s a person to do in order to protect themselves from the destructive ways of the Fed? You’ve got to position yourself to benefit from their unwise ways. That’s what we’re doing in the Ultimate Wealth Report.

Therefore, if you’re not sure how to do this on your own, come see what I’m doing in the newsletter. You can get a free trial for a few months and check out what I’m doing first before seeing if you want to continue as a full-fledged member of Ultimate Wealth Report. Find out more about it

About the Author: Sean Hyman
Sean Hyman is a member of the Moneynews Financial Brain Trust. Click Here to read more of his articles. He is also the editor of Ultimate Wealth Report. Discover more by Clicking Here Now.

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Those who don’t read charts don’t realize that the next leg lower in the greenback has just begun. They just know that it’s rallied for well over a year up until recently.
Monday, 04 February 2013 07:45 AM
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