U.S. Dollar Index (91.26)

My unique price momentum models continue to indicate a powerful underlying upthrust on the longer term U.S. Dollar Index chart. However, short term momentum suggests we need another rest, if not a modest short term setback, in this stepwise recovery process. A pullback to previous resistance in the area of 90 would allow the 200-Day Moving Average to catch up with recovery of the index itself.

In times past, the U.S. Dollar has been a safe haven on the planet during periods of uncertainty, and money fled from the dollar into gold when problems reached the frenzied stage. A flight into gold came at the expense of the dollar and other world currencies.

In recent months my unique price momentum models have insisted that gold and the dollar should rise in value in unison, and this has of course come to pass. Money panicking into both world safe havens at the same time? What manner of negative news is world capital running from?

At this point, a return to "normal" would require a sharp setback in either gold or the dollar. Neither has shown any indication of doing this. My concern is that a world event will take hold so quickly that my math models will provide no adequate warning. Something has to give.