Hey Dollar: Nice Bottom

Hey Dollar: Nice Bottom

These are the types of days that must make Bernanke yearn for QE3.

It’s all red on the screen, except for a few notable exceptions – namely gold, and the dollar.

The dollar has turned around nicely since its late April lows, and has quietly traced out a set of “higher lows”.

US dollar price chart July 2011

The buck (decline) stops here.  (Source: StockCharts.com)

Taking a step back, we once again see that the dollar has strong support around the 72 mark.  Could the end of QE2 set the greenback off and running towards its previous highs in 2009 and 2010?

US dollar long term price chart July 2011And it’s got some room to run.   (Source: StockCharts.com)

Our friend and correspondent Dr. Evil recently joked to me that a dollar rally heading into Jackson Hole would be the perfect excuse for Bernanke to make the case for QE3, so that he could (insanely) make the case that QE2 hadn’t hurt the dollar at all!