Dollar at risk

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Chart courtesy of http://stockcharts.com

The US Dollar (USD) is a sort of enigma nowadays. It´s like the USA debt currency but still is a kind of world cash. Anyway, I think a monumental Head and Shoulders top pattern is developing (H - 92.63; S1 – 85.44; S2 – 87.33). Breakdown of potential neckline at 84 targets 72 level. On this outcome, Gold will be climbing fast in parallel. But we have to wait and see if the pattern stands and is really activated.

As a matter of fact if Gold could manage to go up during 2005 with a climbing USD I am curious to see the real upside potential for Gold on the context of a descending USD. On the short term USD is holding and even showing good strength but in my opinion this is not sustainable.

On a possible world crisis, USD is everything but a good option as it surely will fall behind due to recession, lower interest rates and several imbalances.