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The EU announced this morning that they will speed up EU QE over the summer – so, presumably, that will see a weaker Euro against other major currencies.
Yep the euro is headed back down to test the lows and the dollar back up. The intermediate degree correction in both is over.
if dollar will bounce off 96 and there will be one more leg down then what is the target ? below friday’s low or its will be just a correction for example to 94
Maybe 92. But the force of this initial move suggests that we just got an intermediate degree bottom that won’t be violated, maybe for a couple of years.
but still there should be correction from initial move from about 96 ? let’s say to 94 ? or you think that its going to be powerful move straight up to 100
Yes at some point the dollar will move down into a daily cycle low but it should still be about 20-25 trading days away.
but it will be move down to DCL from 96 or rather 100 ? 🙂 sorry for so much questions but i’ve missed entry and now im not sure if i should buy dollar now or just wait like you say 20-25 days until DCL
The dollar should bounce off Gary’s resistance level or close to it to put in an inverse H&S. You can always get in on the breakout through that neckline.
I would argue that the initial thrust out of this bottom is way to powerful to be just a minor daily cycle rally that will roll over and make new lows. This is an intermediate bottom and the dollar is headed back up to new highs. I’m in the same camp as Jim Rogers in thinking the dollar could possibly become the next bubble.
One either needs to be long or on the sidelines. This is no longer a market to be short. The risk is too great and the secular trend too powerful.
If the Fed starts QE4 then the fundamentals will change and then it would be time to go short for a new bear market.