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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: Jim Willie CB who wrote (12046)4/16/2004 7:44:03 AM
From: Real Man  Read Replies (2) of 110194
 
Jim, I agree, DXY makes no sense.
Clearly, Euro is the most important currency for the DXY,
with 57% weight. I also look here:

fx.sauder.ubc.ca

As you can see, the blue area is 95% confidence area in
a trend. We are at 1.19, and the current projection is
that the trend will take us to 1.275 by the end of may.
Moreover, very likely it will be an overshoot to 1.30

fx.sauder.ubc.ca

I think the information on whether or not an index
resistance or support lines are important can be taken
from the trading volumes. Clearly, trading volumes in
individual currencies are much higher than in DXY.
Therefore, it does not matter. Major stock indices do
matter, because the trading volumes in them are very high,
especially if you include derivatives.
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