I believe the US Dollar Index is coming close to completing a year long “flat” corrective move and will, over the coming, weeks explode to new highs.
There, I said it. I have no idea what the fundamentals say, what Janet Yellen says, blah blah. All geometry and music – all the time.
Here’s the corrective moves of the past .. they have ALL arced out a “N” corrective move (see red lines on chart below)
also, notice the 3rd of a 3rd thrust into this higher level … lastly, were getting to the lower level of the RSI (weekly)
the question? why is it holding this support? Well, music of course .. here’s the chart:
from the initial lows we POP up and that move is the corresponding “energy” we use to move the “waves” out .. in this case we used all musical notes from the equal octave scale of music and used “musical” polarity to project the top of the circles as both support and resistance. (see the blue rectangles)
notice how these musical notes formed the channel of support and resistance for the USD…. cool, hugh?
knowing the EURO makes up a majority of the USD Index – let’s see what it’s up to!
as you can see above, the triangle thesis is pretty much “out” but the formation of two very powerful patterns is occurring. I’m going to eye for 200 pips or so higher for another short opportunity.
how about the longer term weekly?
if you take a peak – you’ll see that we still haven’t even reached .382 of the most recent swing high. Additionally look at the TIME of the corrections. next week marks 66 weeks – the longest corrective TIME period since the all time high. (NOTE THERE IS A MISTAKE ON THE 2008-2009 area – it should NOT read 57 weeks but 66 weeks – apologies.)
also, note thee target zone comes right into VERY STRONG POLARITY RESISTANCE from 2004-2005.
Appears “bearish” doesn’t it ….?
WELL, HOLD YOUR HORSES … this could be a HUGE move based on a QUARTERLY LOOK at the EURO:
in this LONG TERM QUARTERLY chart you can see that it produced 2-3 “quarterly wicks” and then dropped .. THE OPPOSITE HAS HAPPENED and w/ the CLOSE of the QUARTER TODAY this is a VERY STRONG CANDLE. This target area shown (blue horizontal lines) must be respected to start the next leg down.
Very crucial and important time for the Worlds Currency Complex across the globe …
Let me know if you have any questions.