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    US Dollar Eyeing Key Breakout Level

    November 12, 2018

November 12, 2018

US Dollar Eyeing Key Breakout Level

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The dollar has not looked this bullish or as forceful since the 2014 advance that put 25% more buying power into the buck.


That 2014 bull run was preceded by our volatility model signaling a 2-2-2. That is a low volatility extreme for all three-time horizons, short, intermediate and long-term. A context that almost always precedes a forceful trend.

The backdrop is the same today plus all of  TMT’s longer-term systems are producing buy signals, which provides traders and investors with direction.

There is a Fibonacci ratio projection for an S-T irregular top at 97.62. If the market fails to break it, that opens the way for a retest of 93.00. Also, you can also see your chart the high side of I-T resistance at 97.99. Given the context a break of that 98 level is imminent. Because the market is now in residence all eyes will be on its ability to break or not.

The market’s ability to breakout will pick up a following with the next stop at our L-T resistance zone starting at 102.04.

ContraryThinker is a long-standing bull on the USD, and from an EWT point of view, it is now entering a third wave,  which usually is – 60% of the time- the most significant part of the uptrend, which fits the above scenario.

Further, a typical relationship is 1.618 times the length of wave one. This ratio projects to 108.55. The high side of long-term resistance is 106.50, but keep in mind on January 1, 2019, the fixed zones are recalculated and pushed higher with the trend.

Standing this outlook on its head is a short-selling opportunity in a variety of currencies, especially the euro, looking at new lows.

Contrary Thinker  1775 E Palm Canyon Drive, Suite 110- box 176 Palm Springs, CA 92264 USA. 800-618-3820 or  25/1 Poinsettia Court Mooloolaba, QLD Australia 4557 614-2811-9889

— Contrary Thinker does not assume the risk of its clients trading futures and offers no warranties expressed or implied. The opinions expressed here are my own and grounded in sources I believe to be reliable but not guaranteed.

— Pricing is subject to change without notice.  My indicators and strategies can be withdrawn for private use without notice, at any time.

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