Currency War!

I was going to do this later but I got a bit excited when I was looking at the charts. We may have some trades developing here. I am watching most importantly the US Dollar and this why I am comfortable with the levels on Gold&Silver. I am not thrilled with the action in the metals today but I am holding pat for now. Gold finished near 1650 and Silver 31. The only thing I fear is them shoving the market around just to take out the stops. If that indeed is the case I will be there to buy. Other than the stop game, I see no reason to panic!

First let us see the dollar.

As you can see on this daily chart, it did not gather much momentum in the past 2 trading sessions above the 80 handle. Maybe it goes a tad higher but this chart tells me it will have a tough time getting above 81. Last week I mentioned the Euro and that I believed the verbal intervention would only be temporary, it seems that we have support at 13355. I have been long since late last week and will keep playing the EC on the long side. Please notice how it seems to not want to stay below 134 for the time being. I would like to see it trade above 13430 this evening. Here is the daily Euro chart.

Next I would like to show you the Cad Dollar and just point out the price action we see from today. In my opinion this may be the best currency to buy at the moment. If you do, you could risk just below the 99 level. If it does break lower, it can always be bought again.

I would have liked to see this hammer formation in Gold today! The other main reason I do like the CD is the fact that Oil is @ 97- and look like it wants to see 100+. I was going to post the chart on the Aussie however I am not that excited about it right now. I will be monitoring that as well.I promise I will talk more about that tomorrow.

The stock market has not rolled over like a lot of us have been expecting, it seems to be more of a consolidation to me. With the Fed printing 85 billion per month, I guess I am not going to get rich shorting the stock market just yet! That 85 # is another good reason to be calm about being long the metals and short the US Dollar.

Don't let today get you down, I'm one of those guys that wears my emotions on my sleeve, I did not have fun today, however I see things brewing and plan on taking advantage of the prices given to me by the "crazies" trading these markets!

Good Night and I hope to see you here tomorrow!
Thanks