The course is plotted for a near-term reversal in Usd valuations, and if it follows through on market momentum there will be plenty of opportunities ahead. There are no fundamentals to get in the way of this one, it will be a sentiment and momentum play that looks to be forming a near-term swing point on the dollar. The final confirmation of a dollar reversal is in the oil and gold charts, they really do have the potential to get the dollar under some further pressure if they hold the next pull-backs at decent support areas.
The variable here may be in where the markets gap to on Sunday, it seems unlikely that they will open as they were on Friday. The chatter of a dollar collapse has to be tempered by the fact that the greenback is still technically and fundamentally dominant. This does look to possibly be a major pair relief rally, but they all have a lot of work to do to reverse the long-dollar sentiment that has been put in place from the bear market in equities.
The dollar weakness may not last too long unless stock traders step in and start unleashing the tidal wave of cash on bonds that must be stretching their vaults to bursting point. At some stage a Mutual Fund rally will come, and that will be the real test of Usd valuations. This may be the wave B part of the A-B-C reversal pattern that confirms the end of a long-dollar play, and confirms that wave 5 may be completed If so, the dollar may start to look weaker than we have seen recently, but that does not mean finished.
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