- WE'RE JUST RANDOM SPECKS OF DUST IN A TORNADO TO THE MARKETS .......
- CHARTISTS MUST PUT ALL BIAS ASIDE AND LET THE CHARTS DO THE TALKING OR WE'LL SEE ONLY WHAT WE WANT TO SEE
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Wednesday, 5 May 2010

Intraday Update - A fresh look at USD & EURUSD

My DX wedge broke before the open so I have had a very careful look again at the DX chart, this time on the daily. I have looked back at the whole rally since December and found a very solid rising channel to encompass the whole move. That channel gives us a target, if we hit it today, of 74.75 for the upper trendline. That would be likely to mark a major interim top on USD, though we could still hit the trendline again further up as we did after the hit of the upper trendline on Feb 5th:



I'll be watching that target very carefully, as the next hit would probably mark the low for this equities correction, just as it did on Feb 5th.

I had another look at the broadening descending wedge on EURUSD, and while that could yet break down just as the DX wedge has broken up, my next target is in the 1.276 area:


The wedge on the DX daily may not yet be broken of course. If we hit the top of the DX channel and then return within the wedge by EOD, then technically, it would be unbroken. That would be a big move and a big reversal, but not impossible after the moves in the last two days.

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