USD Index – close to a BIG move UP?

if you have been following my blog, you’ll remember the big measured moves that were around when the dollar was carving out THE low. they have appeared/are appearing again. w/ a wrinkle … using “basic” monthly cycle tools you can see that we have a BIG cycle coming in this month which lines up w/ the measured move target zone a little lower in the index. this could be a BIG DOLLAR MOVE higher ….

below you’ll find the chart that started the dollar bears growling and stopped the dollar bull in it’s track. the form, proportion and balance are amazing and exact. take time to study this chart

the time and price symmetry of the latest high on the USD Index

since then, the USD Index has basically been carving out what looks like a flat correction and then higher … you can read prior posts to see if this was an A-B-C correction or 1,2,3,4 (in work/finishing) and then higher in a big 5th wave. we are getting a little below the end of wave 1 which breaks a rule if your a purist but it sure looks like we are bottoming. then, the last chart is an intraday chart showing a possible mathematical derivation of wave length based on fibo relationships that could get us into the target zone … so, stand by, as this is a BIG level coming up on the USD.

notice the dashed black and blue arrows, they are exact measured moves and then note the long term cycle that is hitting this month

2 hour intraday chart showing wave relationships that could get us down into the target zone .. used equality of wave 1 and 1.618 wave 1 to project.

Dollar Index and the “D” word …

updating the dollar index fro this previous post:

http://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