Dollar Update

Given the break of the channel boundary and the major hourly divergence, I'm assuming that the first wave up has ended.  If we can get back up towards 75.00 I'll close my position and look for re-entry.  If not, I'll just double down when we get into the 38%-50% retracement box.  My entry was at 73.60, so adding at 74.40 in equal proportion would raise my average cost to 74.00 even, a little below some healthy support.  I'll be keeping an eye on the MACD trendline as we approach it to find a good entry.

Dollar Index hourly chart

UPDATE: The Dollar just broke 75.00, but I'm not going to try to get cute with my core position here.  After killing the Silver specs, the CME is now moving on to Oil.  They bumped margin requirements for both Brent and Light Crude by 25% tonight, effective after tomorrow's close.  This ought to be good after we already had a $20 drop and everyone saw what happened to the Silver market when the CME went after the specs there and bumped margins five times in eight trading days.

Remember Bernanke's press conference just a week and a half ago and how he had to field all those questions about inflation and commodities but said it wasn't his fault and he couldn't do anything about it?  At the time I couldn't believe that guy, and posted a chart correlating the size of the Federal Reserve Balance sheet to the CRB Index.  Now I'm beginning to wonder...especially after Obama blamed speculators for high gas prices only a week before that.