I want to be clear, this is an option. My personal view is that when a continuation pattern reverses and goes the opposite direction we will likely continue in that direction. However, the triangle pattern that the dollar and the EURO made turned out, more or less, as anticipated for a first move. They produced A-B-C patterns that were very symmetrical. One of the things about these kinds of zigzags is that the three wave patterns show a high level of stress and a lack of commitment to a move...given that the moves out of them are less probabilistic...this is why I trade extreme price movements and not wave patterns. But they are a good guide and I am putting this one up because it is nagging me. The fact that the upper trendline (black) is an exact symmetrical distance away from the bottom of the "b" wave of this zigzag is highly curious and something that everyone should pay attention to.
No matter if this pattern were to play out there is no where else to go but the dollar. Kamakazi Ben BURNanke can not change that no matter how he tries and the moves in Gold and Silver are an extreme reaction that has officailly escalated into a rediculous consenus that make absolutely no practical sense. Additionally, silver is trading within the patterns as presented in my last Silver chart.
