Greenback!

Looks like we'll soon know what the dollar is all about! The move of the last couple trading days has brought us within reach of the 200 days moving average (green line below). Here is a chart of the dollar index future.

We broke over the 200 day MA briefly in August and September before crashing down in September again so this is not necessarily "the" sign, but the 50 day MA is in a positive trend now as opposed to back then (turned positive in November)! This latest move has been mostly based on recent weakness in the euro, yen and Australian dollar. We all know the situation in Europe and the euro just broke under its 200 day MA so not a good sign. The next resistance point is around $1.27. The Australian dollar is probably victim to multiple factors - floods and possible "soft landing" in China. And the yen is coming off new highs which probably makes the Bank of Japan uncomfortable so I guess they won't be rushing to help! Overall, this could be the recipe for a revival of the US dollar. The next week or so could be telling.