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.


Update on the Dollar: July 24, 2012 — 5 Comments

  1. PW does the S&P look like a H&S to you with LS 1357 H 1380 RS 1353 the neckline
    just broken at 134160 min. chart. If so this should point to a target of 1300ish. Thanks  

  2. I think PW is very busy this morning.    The drop in the past 2 days have done a lot of damage to the original forecast.   For one thing, the path to 1389 to 1406 target needs to revisit and reaffirm.

    At least the time frame of the target might need to adjust.

  3. where are the charts posted – would be interested to know your opinion on what is happening