Head&Shoulder patterns only have power with 3-4 months/years
check this USdollar chart over the last few months
stockcharts.com[h,a]daclyyay[dc][pb50!d20,2!f][vc60][iUb14!Uh15,5,5]&pref=G
more importantly is the rapidly descending 20day MovAvg
it is somewhere around 107 now
ominously hovering and descending
in late June it threatened from above when the 111-112 range was being diddled and fiddled
back then I said we had a couple weeks at most before the next stage down hard for the USdollar
turned out to be just a few days
now again we have some tough chart patterns on the dollar to interpret
back in June, it looked more like a "pause pattern" before resumption down
turned out to be right
now we have better "toehold pattern" for stabilizing
but the 20MA is coming down so rapidly, it is scarey
with the current range being 105.5 to 108, maybe it isnt wide enough to promote stability
the difference (oversold condition) was so great between the current price and the 20MA
maybe the very rapid lost gains in mid-week were a signal that the currency market cannot hold here
I dont think the dollar is showing much strength here
it seems hovering at lows, unable to hold any gains
and all gains are at the hands of coordinated CB intervention
I say the USdollar has up to two weeks before resumption down
one thing I have learned about currency over the years
THEY MOVE AND THEY MOVE WITH POWER AND MOMENTUM AND FORCE
maybe not move in real large chunks, like stocks
but once a trend is in place, it continues for months and months and months
until it is done, if not overdone
Puplava calls the currency markets "the financial jetstream"
makes perfect sense
in fact, he calls the rapid USDollar decline the necessary ingredient to "The Perfect Financial Storm"
it has begun, and it will resume
these past two weeks we saw its awesome destructive force
but then again, guys like Voltaire and CNBC and Biggs might think all is well, great buying opp
/ jim |
