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April 18, 2008

ChartWorks
by Bob Hoye

Technical observations of RossClark@shaw.ca

The US Dollar, Euro & Gold

In the past three decades, once the Dollar became oversold (or conversely the Euro became overbought) the chance of a rebound to the twenty or fifty week moving averages increased dramatically. We are there now. The Dollar produced a weekly downside capitulation alert the week of March 28th. The Euro staged weekly upside exhaustion alerts March 28th through April 11th. Couple this with a weekly sequential sell setup in the Euro as of April 11th and we are in a position to undergo a tradable dollar rally.

An offshoot of such a correction in currencies is a related decline in the gold price and related equities.

WRAP:

• The dollar index has successfully completed the "Sequential Buy" pattern.
• The euro has completed the "Sequential Sell" pattern.
• Tradable moves in both, as well as the gold sector seem to have started.
• The following cartoon emphasizes that a firming dollar could exacerbate still over-extended credit markets.

Bob Hoye
Institutional Advisors

The opinions in this report are solely those of the author. The information herein was obtained from various sources; however we do not guarantee its accuracy or completeness. This research report is prepared for general circulation and is circulated for general information only. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. Investors should note that income from such securities, if any, may fluctuate and that each securitys price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily a guide to future performance.

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Copyright © 2003-2009 Bob Hoye

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