SOS US Dollar

Will the US Dollar rebound? A trillion dollar question.

"Then a November 7 Financial Post piece titled "The Gold Standard and the Doomed US Dollar" surmised that unless the buck realigns itself to bullion, the US currency will collapse like a house of flimsy paper cards. "

Let us see whether this news is true or not over the next 6 months. Why not look back for the past one or two years.

Here, the following news items from last year (2009) say plenty:

• “The US Dollar’s reign as the world’s reserve currency is about to come to an abrupt end.” (July 2009, Daily Times)
• “Financial experts say there’s no end in sight to the slide. The traders we talk to have a grim outlook on the US dollar’s future overseas.” (July 2009, Hartford Courant)

• "Beware The Falling $US" (2009, Forbes)
• "It's looking like the line of least resistance [is] for further dollar weakness against the majors." (2009, MarketWatch)

YET -- on November 26, 2009, the dollar hit bottom and took off in a powerful, seven-month rally to star-gazing heights in early June, 2010.

MyView

It seems that market is like a rubber band, when it is stretch to the maximum, it will rebound back. If the chart can be use as a tool to "forecast" , there is a good chance the US dollar "may" rebound over the next 6 months. Let us monitor this chart over the next few months.