Dollar Index and the “D” word …

updating the dollar index fro this previous post:

https://bartscharts.com/2013/10/27/us-dollar-as-of-10272013-900-pm-est/

yesterday, saw a quick blurb on the financial news channels that first mentioned the “D” word and here is the link:

http://www.marketwatch.com/story/ecb-options-limited-euro-zone-defaults-to-deflation-2013-11-06?link=mw_home_kiosk

today, they CUT RATES and the dollar index took off like a rocket ship.  having had the wonderful experience to gain the CMT and then teach the capstone course for the CMT Level III for a while it was burned into our head that the dollar, while somewhat of a wild card will, in fact, STRENGTHEN in a deflationary environment.  Sure looks like that is the case .. but now I’m going off into fundamental nah nah land (it’s not nah nah land for most of you, just me.  as my skill is advanced pattern recognition which, unfortunately, is nah nah land for the people reading this.  so in the end, we are all in nah nah land.  I digress ..)

of note today, the US Dollar Index exceeded it’s largest corrective move since July of this year …while a pullback in the dollar is expected (perhaps intraday) I would look at this as an opportunity to add to the position.  additionally, from the below charts expect resistance on the way up in/around 82, 82.50, 83.50.  believe we are going to take this trip into the low 90’s.  THEN THAT IS WHERE IT WILL GET VERY VERY INTERESTING …

rock on, always  Bart

Dollar Index

Dollar Index

target in the low 90's as shown

target in the low 90’s as shown

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