Dollar Index Status....

I normally do not use other people's forecasts at all but in this case I think this Elliot Wave Fellow does as good a job as anyone. The link is here and you can read it yourself.

https://ew-forecast.com/newsletter/sep_29_2017_is_usdcnh_signals_for_dollar_rally

Normally I don't follow any sort of system where people see things that are not there. Elliot Wave is very subjective that way and often you see things that are simply not there. Sure it uses patterns and so do I at times but I also use my own neural network (which is my brain for those of you who think I employ complicated technology) to spot turning points and winners.
     My own brain is still far more powerful than the most advanced algo so I put my faith in it versus technology. It can see the set up far more quickly than any program. For example I saw the move down in Oil today at the 50.33 area long before any algo would have spotted it. One trade and nice profits. Not because of volume or anything else but because I know a pump and dump when I see one and I understand when traders will likely keep buying the dips.
       Now on to the Dollar. I think that we are indeed into a corrective pattern. I do believe the Dollar is yet headed higher. Perhaps to new highs after it bottoms around the 90.00 area. There is a large volume area building here on the weekly pattern making a significant move probable one way or the other. It is still likely to rally to about 95 before heading into the impulse higher. The inverted triangle at the top is what is showing me that the bulls should eventually win out. The move should coincide with sentiment that is now skewed to a lower Dollar and Trumps rhetoric.
      This is the same reason why I believe the EURO is headed lower and not higher like people believe now. The time to go long was when I was telling you to months ago. Now is NOT the time. A crisis of some sort might trigger it for a much faster move higher but at the moment it is not a fast process. Extreme's have not yet been built. When I told you to sell the AUD at the 08200 area it was because extreme's were building. They still are. However patience would have had to have been exercised as there was about 4-500 pips but it was not fast. In fact it took about 2 months. I feel the Dollar may yet hit 110 so keep that in mind over the next six months or so as it dictates what happens in most other markets. A strong US dollar is not a bad thing globally, however it can be if it is forced higher due to debt liquidation.
      Yellen has stated quite clearly that she believes that another financial crisis is unlikely in our life time. Well I don't know, but I guess they have figured out a way to print  money forever and ever amen. I doubt that it will solve anything internally as debts keep mounting. How do you get rid of this unless you completely overhaul the financial system and to be clear it should be overhauled. Kicking the can down the road has never been a good plan in my books and I don't see how you can do this indefinitely.
     If the Dollar is going to make a move don't look for gold to rocket higher any time soon. It still may hit 1500 but I don't think so in the interim. If the Dollar breaks down then we may have a move substantially higher but at the moment I doubt it. I will keep you posted on what I see.
Cheers!

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