After a gallant battle the USD finally gave up the ghost at 75 cents courtesy the Euro breaking solidly over 1.50, and is falling quickly to its next challenge at the head & shoulders neckline (see chart.) One things is certain - the Greenback is definitely in a heap of trouble if it can't muster up even a little right shoulder at 74 cents.

Consulting the Golden oracle for a clue as to the Dollar's near-term fate predicts a poor outlook as ole yeller has been consistently chewing through one technical level after the other without even taking a breather.

As a matter of fact Gold's recent gains have far outpaced declines in the Dollar and this has me wondering if Gold is either now taking the lead as a mover *of* the Dollar or is this a brief but important anamoly - a mad scramble for the last big stashes of Gold underway - a loud blast of the air raid horn warning immediate trouble lays directly ahead for Uncle Buck.

I agree with Sinclair in the sense that signs are growing stronger Gold has now entered into a runaway bull phase and the small producers are bound to benefit rather handsomely sooner rather than later, courtesy record sums of money pouring into the sector, in fear of a collapsing USD. I think Shorty recognizes these money flows are gaining traction & has been winding down his short position to settle the books, knowing full well ECU will definitely be one of those beneficiaries very soon.