Using June/ August 2010 as the low in silver I come up with the following retracement levels:

38.2% Approx 37.80

50% Approx 34.00

61.8% Approx 30.20

Using the same timeframe for the dollar the greenback has a target of $68 to complete it's current trend. It now is in a dead cat bounce that could take it to levels of:

38.2% Approx 74.50

50% Approx 75.00

61.8% Approx 75.50

The dollar chart looks terrible. Once it breaks slightly below 72 it is in unchartered territory. Silver on the other hand is setting up nicely on a beautiful 30 year cup and handle pattern that is playing out now. The fact that it didn't break the 1980 high and retraced from 49.80 makes silver even more bullish after this short term correction completes.