Tag: negative divergence

  • Update on the Dollar: July 24, 2012

    There is significant negative divergence on the dollar on both a daily and weekly basis.

    DX is also very close to completing those harmonic patterns it hasn’t already completed.

    It’s approaching the .707 of the largest (yellow) pattern, tagged the 1.272 of the next largest (purple) pattern, tagged the 1.618 of the red pattern, nearing the 1.618 of the pale blue pattern and the 1.272 of the smallest Butterfly pattern, seen in the chart below.

    DX is also approaching the price level of the last rising wedge apex — which is the next best thing to an actual back test to the RW itself.  No guarantees — because the dollar is suddenly the asset everyone wants to own — even if it costs money to do so.

    I have a bunch of charts to post this morning.  Check back around 10 AM EDT.