At time of writing,
the Aussie dollar fell from this week high of 1.10104 to 1.06,
The Euro from 1.4939 to 1.4562.
Similarly, commodities like Gold from US$ 1576 to US$ 1476,
Crude Oil from US$ 114.80 to 100.50.
(Technically, there is a Head and Shoulder formation in the ALL of the above Daily charts!)
As a result, the USD Index rose from a Year 2011 low of 72.86 to 74.20
(Technically, there is an INVERSE Head and Shoulder formation in the above Daily charts!)
The SURPRISE came when
- The Euro plunge as a result of a LESS hawkish tone from J C Trichet in his delivery after it’s Monetary Policy Meeting.
- Another increase (the fourth) in Margin requirement for Silver triggered the plunge dragging precious metals lower.
- Jump in inital jobless claim ( indicating lower global demand) …