Monday, December 7, 2009

U.S.Dollar





right click chart to open in a separate window or tab.

The DOLLAR could be making a secondary low.


The chart shown above shows several trendlines all of which are the same basic slope. The initial line connects the 1989 and 1994 HIGHS in the $. When this line is extended it intersects the 2008 LOW.






  • the coordinates of the intial 2 points (1989-1994) are (x & -y)


  • the corresponding red vectors have the same x, -y values


  • the green vectors have the coordinates (x & y) (up-sloping green vectors)




Note that the latest green vector initiated at the low (intersecting the primary red vector) has supported the recent decline in the $. The fact that these vectors have highlighted several major pivot points gives credence to the argument that the recent low may hold. If this is infact the case, the new uptrend for the US $ could be initially contained in the yellow highlighted area.





EUR-USD: The FX EUR-$ has been contained in the upper fibonacci channel since the early 80s. The daily chart on the bottom shows a convergence of trendlines. Last weeks decline in the Eur-$ FX violated the uptrend line from the March 2009 LOW. The converging uptrendlines while the EUR-USD simultaneously meets resistance at the upper downtrend suggests that there will be an imminent resolution that will be followed by a large amplitude move.



2 comments:

Jim said...

Thanks Pete for sharing your work and charts in this blog,...much appreciated.

Good workup on the US Dollar. It will be interesting to see if we can get above resistance at 76.10 or so,..not very far away.

Have a good day. Regards, Jim P.

R.D. Bresnahan said...

$ is surging today.12/15/09 ...we will have enough information soon to make some projections. re: my charts...not a problem..glad you look at them