With all the doom and gloom about the "fiat" currency, US Dollar, it is hard not to get on the trash train and call out for an "alternate global currency". Well, now I know what "they" are smoking or they will need to when they awake from their self inflicted bold illusion.
Lets see the daily chart for US Dollar Index futures. It is obviously bearish for now but I am counting on to a bounce at $75.943 or so. Whether that bounce is just "another" upward correction or the reversal is yet to be seen. But I will dare to be bullish at that level until the market smacks me.
Why? I can count a 5 wave decline that is ending at $75.943 - $75.602. The lower target is achieved by counting by measuring from the real body of the candle. I am assuming here that wave (v) will be equal to wave (i). It the guideline of equality since wave (iii) is longer. Although wave (iii) is not shorter than 1.618 of wave (i). But still the structure looks fine.
Also, notice the jump in volume. Are the minority bulls finally throwing in the towel or it is accumulation? Jump in volume at price extreme is often a sign of price reversal.
Also, notice the jump in volume. Are the minority bulls finally throwing in the towel or it is accumulation? Jump in volume at price extreme is often a sign of price reversal.
BTW, where are the all the Fundamental Analysis folks that proclaimed that since US led the world to recession, US will lead it out! So why USD is so weak. Oh, the printing press theory. Well, it is happening all over the world, especially Europe. Why is cable so strong now?
That is why it pays not to put too much stock (sic) in the popular theories of cause and effect propagated by the Financial gurus.
75.943 is my level and I can count to 5!
No comments:
Post a Comment