Friday, July 9, 2010
For Dollar Bulls (and Bears)
This is a elliott wave analysis of the USD index. The components are : http://www.babypips.com/school/the_usdx_components.html The analysis starts at a monthly level (monthly high low close) since 1985. That shows that the Dollar is due some major bull move. You can see the 1 and the 2 on the far right. As Laura says after the pink 2 comes the pink 3 of the green C, and that C should eventually break the break the green A (2001). This (amongst other supporting indicators) was why i said @ 2 [when everyone was saying that the USD was finished] that no the dollar was about to make a big move up. So why is it important, how reliable is it and what has that got to do with asset prices? I will say why i think that in the comment below.