A dropping Dollar is considered an advantage for U.S. firms that trade internationally.
But, could a falling Dollar turn into a U.S. confidence crisis?
The answer is Yes. While a falling Dollar is good for U.S. exports, there
is a point where a good thing could turn ugly.
Take a quick look at today's Dollar chart and you will see where that point
is.
Where we are now ...
Note that the Dollar is now below its 74.21 support level ... and there are
no more supports until it gets down to 71.31. So now, the Dollar should continue
to fall and that will be good for our stock market and for exports.
However, as the Dollar starts to approach the 71.31 level, glee will
turn to worry as investors start to wonder if the Dollar and can make a double
bottom (at 71.31) ... or if it will plunge below that support and go into free
fall.
It is very hard for anyone to imagine the Dollar not holding that double bottom, but
if Congress doesn't wake up soon, stop trying to satisfy lobbyist, and
start making decisions for its citizens and economy, then the Dollar will
judge them harshly.
Marty Chenard is an Advanced Stock Market Technical Analyst that has developed
his own proprietary analytical tools and stock market models. As a result,
he was out of the market two weeks before the 1987 Crash in the most recent
Bear Market he faxed his Members in March 2000 telling them all to SELL. He
is an advanced technical analyst and not an investment advisor, nor a securities
broker.
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