Kamis, 10 September 2009

USD Index trending down - Always go with the trend!


Here is a Daily USD Index chart with an interesting cyclical points which imply the weakness is here to stay.

Pls note the Parallel Channel (Blue lines) has been breached 2 days in a row with a clear target sub 76..

The slope of the 21-Day MA only adds up to Acceleration of the present trend.
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Here is a Weekly USDX chart.

The present pattern shapes up as a Falling Wedge (Which typically has Bullish implications) but it depends on if the week will close below the T/L as it is breaking it to the downside at present.

Lower there is another Low just below 76 and then 74.20/30.
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On a side note just psychologically interesting that this has been trending for a long time and people should have been conditioned for the USD weakness - in spite there is constant 'fight' against the flow. I am extremely interested to watch what the mass 'contrarian' thought will have as final resolution.

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