...and now, a couple of negative points for the Greenback.

Reason One:

On March 16 and March 19, I wrote about this 'flag' pattern that the US Dollar/Canadian Dollar was trading inside of. Now, I felt that if it were to continue in the channel, it would explode sometime in April. Well, it broke in favor of the Canadian Dollar:



This pattern goes back to January, so I think it is a significant break (even though I am voting for a stronger dollar.) We should also note that the pair could easily trade north right up to the trendline but then come back down. I spoke to a mutual fund manager today, and he thinks that the S+P comes down a little more, and then resumes its upswing...that would correspond to the same sort of thing I just mentioned.

Reason Two:

Pretty succinct quote here from this analyst even though he doesn't give his reasons here:

David Solin of Foreign Exchange Analytics in Essex, Conn., agreed that Friday's rebound was likely the result of profit-taking before the weekend, and said he expects the dollar to continue its fall next week.

"I wouldn't read too much into today's changes," Solin said. "This is probably not anything more than a little consolidating after the huge sell-off we've seen."

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