The U.S. Dollar has been on a tear over the last 8 months. In early morning dealings today, Wednesday, December 3rd, the U.S. Dollar Index (DXY) advanced above its June 2010 peak of 88.71, and as of this time at 7:30 AM Central Time, the intra-day high so far today is 88.96.
As can been seen below on the attached monthly chart, the U.S. Dollar Index is approaching its March 2009 peak at 89.51. There is also fairly significant overhead resistance at the 200-month moving average line.
I strongly believe that the U.S. Dollar Index will soon reverse to the downside as the U.S. Treasury begins a "stealth" program of selling Greenbacks in the open market to protect the U.S. export market and to halt the import of deflationary forces attributed to a strong Dollar.
The implications of a downside reversal in the Dollar are significant. Gold will be the primary beneficiary, of course!
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| U.S. Dollar Index (DXY) Monthly Chart with 200-Month Moving Average Line |
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