Tuesday, September 15, 2009

Dollar update

The dollar needs to bounce solidly into and over the declining wedge. Its hanging around the lower wedge area as you can see, which coordinates with a 61.8% of wave 1. The dollar needs to get moving pronto. This setup points to a relatively big reversal in the dollar and likely the market soon or a continuation of the dollar decline and therefore a market rally.
I would not be surprised with a better test of the 2 - 4 line and then a large reversal. This would be in keeping with a potential for the market to test 1061 to 1069 tomorrow and then reverse.
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