ChartWorks
PUBLISHED BY INSTITUTIONAL ADVISORS
February 4, 2010
Technical observations of RossClark@shaw.ca
US Dollar Index

The US Dollar closed decisively above its 50-week exponential moving average on January 29th
and is seeing follow-through action this week. In all, but one instance since the 1980’s the
ensuing rally has managed to test the upper 50-week Bollinger Band within two months.
Support should be evident at 78.00.
• The catalyst behind the jump to new highs for the DX has been further deterioration in
sovereign dept--particularly for Greece, Spain and Portugal.
• Yesterday Moody's made a comment on the developing threat to America's credit rating.
As the White House continues to remind, all of the political and economic culture is to be
changed to a radical experiment in fascism. This is bound to show up in U.S. credit
ratings.
• Last week's surge in the gold/silver ratio through 65 signaled the resumption of credit
concerns.
• Yesterday's ChartWorks focused on the nominal price of gold, without any consideration
of changes in the dollar. There is a probability that in a period of financial distress gold
could be firm in dollar terms as the DX is firming.

Rest of article and analysis linked here:

http://www.321gold.com/editorials/hoye/hoye020610.pdf