Wrap: Coiling Dollar Set to Unwind
Over the medium-term, like many other broad based indices, the dollar continues to consolidate in a rather large sideways range. Its boundaries however, are not visually discernable in looking out over the short and near-term as we’re doing here.
Over the near-term, the dollar has been coiling in a contracting triangle from late May. Although it reserves the right to continue coiling for a couple of more weeks, the longer it does so, the more violent the unwind may be.
If it goes too far, and moseys its way right on through the apex without fanfare, well then nothing may come of it at all. However, a near-term upside break or downside breach of the pattern carries a directional impact on the order of 2 ½ - 3 ¼ points from the point of escape.
Short-term, we have circled capture of the 75.25 target from Wednesday, and draw your attention to a potentially potent buy trigger just above the market.
So long as the 74.84 pivot low holds, this short-term long entry set-up could jettison the dollar in excess of 0.50 cents in the blink of an eye.
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I trust and hope that you have extracted something of actionable value from this edition of Technically Speaking.
Until next time,
Trade Better/Invest SmarterJoe Russo
Publisher and Chief Market Analyst
Elliott Wave Technology
Elliott Wave Technology's Near Term Outlook is for those who demand masterfully consistent and objective technical analysis that visually lays out actionable ideas from which to engage the broad markets over the short and near term. The publication is delivered to institutional and private clients each Monday, Wednesday, and Friday evening.
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