Monday, October 26, 2009
Dollar Close to Confirming Bottom - EUR/USD Needs Break of 1.4828
The US dollar is showing the type of strength needed to confirm a bottom as I mentioned on Friday, and that the british pound exhibited earlier which evidently signaled what the dollar was about to do this week as I projected. The above 2 hour EUR/USD chart shows the bullish euro move against the dollar wave count as complete, and the straight line down signifying the dollar's strength against the euro today. A break of the previous wave 4 low at 1.4828 would be a strong indicator that the EUR/USD had formed a top, and therefore the US dollar had formed a bottom.
The dollar is important to watch because a dollar bottom means a stock market top most likely.