USDOLLAR Rally is Running on Fumes
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
-After flirting with the line that extends off of the 2011 and 2012 lows for 3 weeks, the USDOLLAR found legs and trades just shy of the 50% retracement of the year’s range and 200 SMA. The bullish outside month in July is a good way for long term USD strength to resume.
-I’d been looking for 10606/15 (61.8% and 2/27 high) before a shaper pullback. That level may still be reached but 5 waves from the July low along with 5 waves from the 8/6 low (in wave 5 of 1) sets the stage for a sharp pullback.
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