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Tuesday, July 28, 2009

Stability in the Dollar and Risk Trends Won't Last Long

The dollar has managed to hold general support that has developed at the very extreme of its range for the year. However, consolidation at such a meaningful threshold is more worrisome than it is soothing. Meandering at levels as significant as these increases the probability of a sharp breakout or retracement. What makes this situation even more volatile is the fact that the greenback isn’t the only asset flirting with significant levels.

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