I stated in a recent post that we like to know why a particular action is taking place in the market but what is really important is the price action itself. That is why I am left scratching my head by this past week’s action in the USD. The chart was showing that after building a fairly substantial SHORT term bottom, the dollar was beginning to rally. I expected the short term pullback to near the 50 day mvg avg. and felt the dollar would rally to the 95 – 95.5 area. Much to my surprise, the dollar dropped significantly on Friday, to just below the 50 day. I don’t know if the dollar fell because of the demand for gold and silver or the rise in gold and silver was because of dollar weakness? Considering that interest rates rose in the US last week the price action was opposite what one would have expected. I have to question the legitimacy of last week’s moves. I believe something was going on under the surface that exacerbated these moves and I expect a reversal of both the dollars decline and the metals sharp rally, this week. I do believe both trends last week, will be the major trend soon, I just think it got ahead of itself. I may be totally wrong and if the charts show that last week’s moves continue and accelerate this week then the charts will once again rule out over any reason, fundamentals or explanation. It is just that it will have been the mother of all head fakes.