The USD Index

Discussion in 'Silver' started by gelxi, Dec 28, 2011.

  1. gelxi

    gelxi New Member

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    Been a while since I posted any charts, but I think this one is significant enough to share. The USD has been bullish lately, and it affects the silver price.

    [​IMG]

    See above the daily USD Index chart. It gauges how in demand the USD is around the world. Note that it is currently making a decision whether to continue upwards in the bullish channel, or break out of the channel towards the down-side.

    Whichever direction the USD index goes, it will usually be the opposite direction for silver.

    In my opinion: The decision it is making today, on whether to continue or discontinue upwards with the channel will be significant in determining the short-term movement of the silver price.

    To follow this index's movement live like I am doing, you can go to the free chart at http://goldprice.org/live-gold-price.html
    1. Right-click within the chart
    2. Select "New"->"US Dollar Index"
    3. Click the "D" button on the top menu to show the daily chart
    4. Under "Chart Type", select "Candlesticks.

    Usual disclaimer applies: Pls don't treat this as a recommendation to buy or sell, i'm just sharing what I see that I feel is pertinent on the charts .
     
    gelxi, Dec 28, 2011
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  2. projack

    projack Well-Known Member Silver Stacker

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    The USD index is so heavily overweight and therefore strongly correlated to the Euro that is basically an EUR/USD cart upside down

    [​IMG]
     
    projack, Dec 28, 2011
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  3. iceblue

    iceblue Well-Known Member

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    So while the bull runs on usd iam stocking up.
     
    iceblue, Dec 28, 2011
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  4. gelxi

    gelxi New Member

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    @projack: Agree that the index is too heavily weighted with eurusd judging from the chart you provided. They're just like mirror images!


    @iceblue: That's my plan too :) anticipating 2012 to be a buyer's market for silver while USD rallies.
     
    gelxi, Dec 28, 2011
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  5. gelxi

    gelxi New Member

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    Looks like it's decided to honour the bottom of the channel.

    The day after:

    [​IMG]
     
    gelxi, Dec 28, 2011
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  6. Silverstore

    Silverstore New Member

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    The Indian Rupee/ USD exchange is not discussed much,
    yet Indians buy alot of gold and silver,
    when the rupee loses value, it costs Indians
    more money to purchase.
    The price of silver 2011, is closely correlated to Rupee/USD>
     
    Silverstore, Dec 29, 2011
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  7. Silverthorn

    Silverthorn Well-Known Member

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    aussie dollars has also held up very well considering. its had a couple of tests to the downside and still hanging in at around parity.
     
    Silverthorn, Dec 29, 2011
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  8. Silverstore

    Silverstore New Member

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    But the price of silver has collapsed,
    got shit all to do with Oz dollar.
    If SS wish to quote graphs,
    my idea,
    that graphs to do with Silver fundementals,
    need to include the biggest consumers,
    INDIA
     
    Silverstore, Dec 29, 2011
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