Once I had a look at the US dollar
in the daily chart, the US dollar crash looked extremely steep in its angle. This usually happens in a "C" wave crash. For this chart I switched back to the intraday scale, but I have been complaining that the entire wave structure was not long enough, for a super impulse. This pattern has pushed much further than what I would want to see in a zigzag.
The Euro has also rallied but it has not created a new record low like the US dollar created a record high. Once my extended 5th wave started to complete, a 3 wave correction unfolded and the US dollar proceeded higher in a choppy fashion. This choppy pattern fits very well into a "B" wave triangle, followed by the standard "thrust" in the opposite direction. All we need is for the US dollar to break it's impulse pattern and then we should watch for another leg up!
If this happens then this will have a big impact on gold stocks in the short term, and I am sure crude oil will also see some negative reactions. OPEC is no longer in the picture as there is no control on oil production at this time. It's the wild west in oil prices and I laughed as soon as I read about OPEC oil ministers walking back to the airport within one hour of starting the talks.
A strong reaction in the US dollar in one direction will get us a strong reaction to the Euro in the other direction. The Euro has the largest weight in the US dollar basket of about 57.6% all the other 5 currencies have far less weighting in the basket. They say the US dollar basket of currencies is in need of updating, I am sure they will update the US dollar basket, but when they will do this is pure speculation.