Subscribe Now

Sunday, October 25, 2009

Benjie's update...

Today I'm updating my expectations on the dollar. As you know I've been bullish for the dollar since god knows when... Back in July with EURUSD at 1.45'ish and USD index around 77 I said I was expecting the USD Index to bottom around 75.40's ... I thought it would be a quick deal, going down to that level and then start shooting up...
 Forward almost 4 months and no USD rally... what went wrong?

In my opinion, nothing at all, USD in my perspective is still very poised to rally big big time, but it has taken a lot of time in these up and downs since July. The fact is the price never went too far from my projection... the low so far is 74.90's which is very close to my projection and nothing to worry about... I guess that in order for the USD to bottom it needs to consolidate and form a base on these levels so that once it's ready it can shoot up. My mid-term/longer term perspective is that USD is poised to rally big time.

The daily charts are showing some big positive divergences, so the rally may be around the corner... big divergences on the dailies+very strong support = rally time.

Unfortunately my chart feeds aren't working right now so I can't show any charts... but Daneric at his blog does show some nice charts on USD (see the nice divergences going on?)

blog comments powered by Disqus

Live Economic Calendar Powered by the Forex Trading Portal
Disclaimer: The information provided on this website, while timely, colorful, and accurate, is not to be taken as financial, legal, tax, psychological or any type of advise. The purpose of this website is to track the progressions of human herd psychology as it is reflected through several financial markets. Any commentary on this page, however useful it may be, is used for illustration, and to inspire thought provoking discussion, and not to be taken as specific trade recommendations. We are not endorsing any site or service, nor are we promoting choice examples as real-life trades. If it sounds sarcastic, it probably is and if it offends you, just don't read it. There are tremendous inherent risks in attempting to trade any market using any vehicle, particularly if it is leverage. Please contact your broker to explain all risks involved in the vehicle you will be trading and any questions you may have.

Back to TOP