[My long-term dollar count/charts can be found in this article (which also nailed the bottom last month)]
This is a quick dollar update, since so many markets are tied to the dollar right now.
The dollar appears to have completed a five wave sequence on Friday, to wrap up wave (3). It is now due to correct down toward the 78.880-78.925 level in wave (4). In a perfect world, dollar bulls would see a rally develop from this zone, which would carry the dollar up toward the 80.5-81 level.
The critical level to watch is the wave (1) high at 78.605 -- a break there would indicate something else is going on. A break of 77.840 would be a fatal blow to the preferred count, and would indicate the alternate count was likely to be unfolding, which would see the dollar attempt a retest of the recent lows at the wave ii/Alt: A label.
The preferred count agrees with the current equity market counts, which indicate a correction is due for both markets. For equities, that means a brief rally, and for the dollar, a brief decline. The dollar will hopefully provide some early warning if the equities rally is to become more than a correction -- but currently, there is nothing to indicate any medium or long term trend changes in either market. Trade safe.
Looks like eur may have made ST double top at retest of 1.34
ReplyDeleteProbably just best to keep the comment thread over on the SPX update, since that's where everyone else is. :)
ReplyDeleteDollar also looks like it's trying to build a base. Don't make me keep coming over to this thread! lol :D
ReplyDeleteBut yeah, let's continue everything on the SPX thread.