Technically Speaking: Coiling Dollar Set to Unwind
Wrap: Coiling Dollar Set to Unwind
Over the medium-term, like many other broad based indices, the dollar continues to consolidate in a rather large sideways range. Its boundaries however, are not visually discernable in looking out over the short and near term as we're doing here.
Over the near-term, the dollar has been coiling in a contracting triangle from late May. Although it reserves the right to continue coiling for a couple of more weeks, the longer it does so, the more violent the unwind may be.
If it goes too far, and moseys its way right on through the apex without fanfare, well then nothing may come of it at all. However, a near-term upside break or downside breach of the pattern carries a directional impact on the order of 2½ - 3¼ points from the point of escape.
Short-term, we have circled capture of the 75.25 target from Wednesday, and draw your attention to a potentially potent buy trigger just above the market.
So long as the 74.84 pivot low holds, this short-term long entry set-up could jettison the dollar in excess of 0.50 cents in the blink of an eye.
Technically Speaking Video
I trust and hope that you have extracted something of actionable value from
this edition of Technically Speaking.
Until next time,
Trade Better/Invest Smarter
Elliott Wave Technology's Near Term Outlook is for those who demand masterfully consistent and objective technical analysis that visually lays out actionable ideas from which to engage the broad markets over the short and near term. The publication is delivered to institutional and private clients each Monday, Wednesday, and Friday evening.
The Near Term Outlook covers 7 essential broad markets.
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Author: Joseph Russo
Joseph Russo
Chief Editor and Technical Analyst
Elliott Wave Technology
Joseph Russo, presently the chief editor and analyst for Elliott Wave Technology, has been studying Elliott Wave Theory, and the Technical Analysis of Financial Markets since 1991 and currently maintains active member status in the "Market Technicians Association." Joe continues to expand his body of knowledge through the MTA's accredited CMT program. Having passed the Level I examination in November of 2004, Joe is now preparing to begin study for his Level II exams. Upon successful completion of an exhaustive level III examination he will have earned the industries highly regarded designation of Chartered Market Technician.
Copyright © 2006-2012 Joseph Russo
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