Tuesday, June 08, 2010

Quick look at the dollar

If we'll look at daily chart and take Nov 2009 low to Dec 2009 high as first clear up leg and we apply Fibonacci extensions of this leg to mid 2010 Jan low – it is noticeable how specific level were serving as resistance (100% held it till mid April 2010) – so called "ab-cd" (Thanks Fujisan)

Right now it is at 262% and volume, although not huge, but significant enough to indicate at least some distribution.


The very same chart with different interval applied – 3 days on daily – will show interesting fact – prior candle was TDSequential countdown Sell 13 and current candle in progress (will be completed tomorrow for 3 days interval)  is forming tight doji. 


Given the level of short interest in EURO I'd be very cautious right now – that dollar spike/unprecedented EURO collapse has exceeded all reasonable "risk shifting" from USA to UE and back and still is nothing more than Chimera - things HERE are NOT better than in EU – we just getting brainwashed easier.

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