Thursday, October 28, 2010

Lucky Sevens for the US $

The U.S. Dollar Index is shown below.
The low following the pivotal November 25 2009 low occurred on Jan 13 2010--a period of 49 calendar days.
If a 49 day square is projected from the November 25 low and interesting phenomena occurs in this time period.

  • The initial period is 49 which is equal to seven weeks: 7 X 7
  • If the initial square is projected out by seven cycles 49 cycle squares make up the larger orange square.
  • The seventh square marks both the time and price of the recent low.
  • A move above the recent high of 78.36 would be a bullish development for the $.

The chart below shows the 45 degree and 30 degree radii coming from the center of the square made up of the 7 smaller squares shown above. Note how the 30* lines has acted as support and resistance during the period of the 7X7 cycle.

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