It’s Scenario, No. 1

The last update on the dollar had three potential outcome scenarios.

No. 1

The dollar rallies from here; moving on to test the highs.

No. 2

The dollar continues lower, tests or penetrates the prior lows, then rallies in a Wyckoff spring to the highs and potentially higher.

No. 3

We really do get a collapse.

The dollar breaks the support area, comes back to test the underside and then heads lower.

Dollar UUP, Weekly Candle

The chart of the dollar (UUP) from the prior analysis is re-printed below.

Now, the updated chart

At this juncture, the dollar’s following Projection No. 1 (not advice, not a recommendation).

Dollar ‘Collapse’ … Where ???

This post just out from Uneducated Economist does a fantastic job of describing why the dollar has not only not collapsed but is strengthening.

The UUP chart above, confirms his assessment.

The other take-away from UE’s post is the absolute strategic nature of what’s going on.

Strategies playing out, years if not decades in the making.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

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