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USD Bear is now 60 + trading days old − Market rallies approaching 90 day calendar cycle

Sun, May 31 2009, 20:12 GMT
by Pierre Charlebois

Trading Metro


This week I'm fully focused on the USD Index. From many perspectives it is entering oversold territory.

  • Potential Elliott Wave count suggests we are in the last 5 wave cycle
  • Trend is over-extending at the bottom of the channel
  • Indicators suggest oversold
  • COT (Commitment of Traders) at extremes
  • Trends are time mature

There is a likelihood of continued bear action to begin the week however evidence continues to mount that the current cycles are due for a sharp flip. My thought is once the sentiment changes it will bring on a strong counter trend.

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index


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