Friday, November 12, 2010

US $ in 3D

The direction of the USDX will determine the direction of virtually every other market--such as Gold, Silver, Copper, SPX as well as a host of other commodities--such as Sugar, Cotton etc.
The chart below is a "3D" depiction of the USDX.
  • Note how the rectangle derived from points 'AB' form the basis of the parallelpiped. Points A and B are the highs of June and August. The base is denoted as dark blue with the facing side light blue. The back of the rectangular solid is the partially hidden yellow face.
  • Note how prices hugged the 'corners' of the parallelpiped.
  • Prices are still hugging the downtrend line which suggests that the anticipated change in trend of the US $ is not confirmed. A break above 78.36 CASH will be construed as being VERY BULLISH and confirm a change of trend.
  • The lower parallelpiped is derived from points CD which are the lows of August and November.
  • Prices may follow the side panel of the rectangular prism as did prices on the descent into the latest low.


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