Is the dollar due a massive rally?

The US dollar has been without friends for some time now. But could it be due a big rally? John C Burford looks at the charts to see what they can tell him about where the greenback might go from here.

For some time, it has been clear to me that the bullish case for commodities has been primarily a dollar story (see my recent silver post).

Just take a look at the movements in the US dollar index, which represents a basket of currencies, with the euro by far the largest component.

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John is is a British-born lapsed PhD physicist, who previously worked for Nasa on the Mars exploration team. He is a former commodity trading advisor with the US Commodities Futures Trading Commission, and worked in a boutique futures house in California in the 1980s.

 

He was a partner in one of the first futures newsletter advisory services, based in Washington DC, specialising in pork bellies and currencies. John is primarily a chart-reading trader, having cut his trading teeth in the days before PCs.

 

As well as his work in the financial world, he has launched, run and sold several 'real' businesses producing 'real' products.