The Dollar index has once again attained new highs after breaking out of a triangle consolidation pattern earlier this week (thanks to the British Pound) while the key component, namely the EUR/USD has not reached new lows. The DXY is looking at a possible false-break pattern and would confirm with a close below today's opening level of 87.560 (ie reversal day). Spot Crude Oil looks like a possible reversal day as well. If these pan out, it could be a positive for the overall market as these have proven to be leading indicators. Below 20-day MA support would signal a shift in momentum and would suggest that the fifth and final wave from the July lows was a "truncated fifth." The ensuing A-B-C correction will target the base of the fourth wave/triangle pattern which is near the 83 handle.
Strategy Summary: LOOK TO BUY EUR/USD
1 comment:
I know that you are also posting on moneytec, so i was not sure where the right place would be to ask you this question.
Anyway, isnt it a contradiction to say that the correction we see now should take us to the 83 handle and on the other hand say that if prices move below the 20 MA, the uptrend in USDX is over? the 83 handle is well below the 20 MA. Why did you start with this elliott wave anyway. Your analysis was very accurate before and the past 2 posts show a little that you are not that confident anymore as you also refrain from calling real trades. Thanks.
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