subject: Candlestick Reversal Pattern Is Driving The Dollar To New Highs [print this page] From a High of 121.02 in September 2001, the Dollar fell almost uninterruptedly for the next 6 years to a Low of 70.70 in March 2008. Candlestick patterns subsequent to March 2008 indicated that the major underlying trend had changed from Down to Up. The first wave of that new Up trend ended in March 2009, concurrently with the onset of the Great Rally of 2009 in stocks. As the Rally progressed, the Dollar retreated, inversely thereto, until November 2009, at which time it turned positive again, thereby anticipating the end of the Rally. In June 2010 it peaked again, completing a bullish wave of one lesser degree than the major trend. It has been correcting. The correction is over, and the Dollar is now advancing again.
Therefore, the Dollar is now in "third waves Up" of both Primary degree and Intermediate degree. The Candlestick bar for the week of August 13 is a tall white candle which "bullishly engulfed" the three "Real Bodies" of the price bars which preceded it. This is a powerful reversal pattern. These "third waves Up" of two degrees of trend, working hand in hand, should drive the price of the Dollar to at least 100 before they are complete, possibly to 104, months from now.
Thereafter, we can expect a downside partial correction, being a fourth wave, which will be followed by a "fifth wave Up" that will carry the Dollar far above 100. That won't happen soon; it's many months even years - in the future.
The Dollar is anything but dead. The rise in its value (as compared to other major currencies), now underway, will distress those who bet against it. The Candlestick patterns tell us that it will be a powerful advance.
Candlestick Reversal Pattern Is Driving The Dollar To New Highs
