18 September 2013

US Dollar Very Long Term Chart - Coiling

It has been quite while since we have taken a look at the US Dollar Very Long Term Chart.

And with good reason, since it has been moving within a fairly tight range, in a slowly tightening coil. So there will not be much to see until it breaks out of this formation.

And as you can see from the composition of this dollar DX index on the chart, it hardly reflects the new realities in the world today, since it is so heavily weighted to the Euro, the Yen, and the Pound, with no representation at all from the BRICs.

But it has some indicative value in addition to historical value.