Looks like Mr. Bernanke is willing and ready to implement more quantitative easing (a more beautiful term to say printing money), and as a result, gold has risen to a record and USD has tanked recently. Will this trend continue in the short term? You Betcha! While I remain bullish on the greenback in the long term, the market wants to focus on the U.S. in the near term as investors seem to believe that the U.S. is the only country that will need more QE. As traders, we never fight the market, and I am no exception as I am currently long the GBP/USD and looking for opportunities to short the USD anyway I can. From a technical perspective, the USD started its big downtrend in 2001 after the tech bust and 9/11 and fell to as low as 73.56 (DXY) in March 2008. It has since entered a symmetrical triangle, which is a consolidation formation, suggesting indecision among investors. It hit the top of the triangle on June 7th and started falling once again and looks to be headed to the bottom of the triangle.
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