Thursday, October 29, 2015

Finally, I now have completed some charts relative to the Dollar Index. I used Federal Reserve data for this series.


From top to bottom we are going from shorter time spans with less 'authority' to longer spans which have more. Studying these. you can see the current value of the Dollar Index relative to other currencies is at a confluence of nodes and overhead resistance. The second chart down from the top shows a 'pincer movement with a 'triangle' or 'wedge' forming between them. With bearish fundamentals and much overhead resistance, one might reasonably expect this index to break down, rather than up. That would be my guess. The current Financial news is grim, with rumours of a budget 'accident' around November 3 or 5th, according to Jack Lew. There are also wars and rumours of wars, with danger of engagement of Russian and American Forces near Syria. Then there's the curious docking of three Chinese Navy vessels in Florida at a time of Heightened tensions between China and the U.S. Very strange to say the least. Suspect by the end of November everything will be clearer. Not better perhaps, but clearer. If you are curious about what important pivot dates were used to calculate these graphs, just left, and then right click on each one and start to save them to your hard drive. Those dates are embedded in the .jpeg file name for each image. If for some reason we get through the next couple of months with nothing of importance happening to the dollar index,the next cluster of nodes of importance will be in the summer of next year. The dollar starts to break down either sometime pretty close, or next summer, looks to me.

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