The Secret Currency War Series:- 
"   Experts " declare: QE2 = US Dollars Tumble Again !

These days every "experts" are telling us that with the massive QE2 by the American Feds would render the US Dollars into worthless papers and hot money will push up everything else. 

Theoretically speaking it is true when a country start printing money massively, inflation will follow thus render the country currency depreciating. This seems to be true in the case of Japanese Yen. But it certainly does not seems to be the case of US Dollars.

I am looking at the US Dollars strictly from the technical analysis viewpoints.

In the weekly chart, the Stochastic has started trying to cross up its 20's signal line > once crossed successfully, it would provide an initial buy signal. While the MACD seems to turning around, but it has NOT crossing up yet. The D- is still above the D+ which is telling us the bear may still have a upper hand over the bull. But the ADX has turned flat which is telling us the bear is losing momentum. The only one bullish signal so far is the price has closed above the lower Bollinger Band for the 2nd week which offers another initial buy signal.

So as far as the weekly chart  is concerned, I think it would be prudent to wait 1-2 more weeks before turning into a buy mode.




The daily chart is certainly more bullish than its weekly chart. Price has already closed above the upper Bollinger band and its recent fractal high of 78.28. A solid buy signal. And I get terribly excited with the bullish divergence found at both the MACD and Stochastic where prices recently went lower but indicators formed a higher troughs. As when the MACD crosses up above its zero signal line would add another confirming buy signal.  The ADX has been falling from above the D- and D+ confirms the end of its prior bear trend. Now the D+ has also crossed above the D- which is offering another buy signal.

With the presence of divergence , I expect US Dollars to rally strongly. This , of course, would go against all the "experts'. But like most of my previous readings on the charts, I think I should be correct again.

If you wants me to EXPLAIN the reasons behind the USD rally amidst all the "logics" and "common senses", I can't. But I can tell you that often charts predicts something that is about to happen soon - maybe more financial crisis ? Wars ? A lot of things that are actually here already, but it is only because most of us REFUSE to acknowledge them.