Market Comment - The U.S. Dollar

My data shows that the U.S. Dollar Index has poked its nose below its 78.33 support level, put in place back in 1992.

This helps to explain the frothy upside trading currently showing up for Gold and the Canadian Dollar. It’s the kind of market action that brings out the Gold bulls and the anti-American pit bulls, but my analysis suggests that I should not be too hasty to jump on the band wagon.

In recent years, many technical breakouts and breakdowns have failed to follow through.