Dollar Index Yearly Chart

Today I start a new series of charts on the US Dollar Index. The yearly chart doesn’t have much data and only offers a bit or two of information. The trend is clearly down from the 2001 high. More subtle is the possible bullish divergence developing between price and the RSI (top pane). We’ll have to check back at the end of the year to see if price makes a new closing low (below 76.62) while the RSI does not. If so then we may just possibly get a technical buy signal on this chart at the end of 2010. Tomorrow we will drop down to the quarterly chart.

Technical Analysis of for longer-term positions:

Dollar Index: Out. (0.65 point loss after 1 trade). If able to punch through 76.8-77.05 this will signal continued bullishness. Note that the dollar is strengthening as the bonds weaken.
World Gold Index: Long on a close above 1130.10. 1101.20 appears to be holding as support.
Cash SP500: Out on a close below 1085.89.
10 yr Bond: Neutral, waiting for a signal. It should be noted that the bond yield has punched through TDST resistance on the daily chart and so the bond itself is in a bearish trend.
CRB Index: Neutral. Has been consolidating since 10/21/09 but TDST Support (266.74) has been holding.