Dollar Index--Thursday, September 24, 2009
Is the dollar bottoming? One pattern suggests it might be so.
A weekly chart of the cash index:
This pattern shows a base formed by the move down from the early March high to a low a few weeks later around 82.60. Then the beta point on the base comes with a high around 86.80 in late April. This alpha-beta base would project an impulsive move down with a 1.618 extended target around 8000 and a 2.618 extended target around 75.80 (75.77 specifically).
A daily chart:
Notice how from late May through mid July the market oscillated around the 1.618 target. Yesterday it came within a few pips of the 2.618 target and bounced, closing up on the day.
Still speculative, but something worth watching.