Saturday, October 31, 2009
Long Term Dollar Count, VERY BULLISH
Since the stock market has been moving inverse to the dollar I thought I'd post a long term dollar chart so you can see how it will coincide with the stock market collapse illustrated in the previous posts. As you can see in the attached chart of the USD/CHF (which follows the US Dollar Index closely), we are setup nicely for a large wave C rally composed of at least 2300 pips! I've already called a bottom in the dollar, as evidence strongly supports it, so a strong wave C rally coincides nicely with a wave 3 or C down in the stock market. For the USD/CHF, the key level is the low of 0.9610. As long as that remains intact, the dollar is bullish in my view. And the risk/reward right now strongly favors the bulls as one can even go heavily long right now with a stop just beneath the recent 1.0032 low and risk a little over 200 pips to possibly make thousands of pips.
The dollar is bullish, and should take off from a launching pad soon without breaking 1.0032.