Elliott Wave 5.0 "Reboot"

Thursday, February 4, 2016

US Dollar Intraday Crash Review

The US dollar dipped a little lower overnight, which breaks the impulse wave I was working but still does not rule out an ending diagonal or a bigger triangle.  Besides a wild correction any decline in the US dollar is a good thing for gold. I have repeated this many times as without the US dollar starting a sustained trend down, gold will not hold in a sustained bull market. 

Yes, we could be on a bigger decline, but there are still too many options (wave patterns) to consider. 

Many will start to jump on the US dollar bearish bandwagon, but if a decline has only a limited short term life span then us dollar short players are going to get into a trap. This usually develops very fast and violent counter rallies. 

Gold has pushed a bit higher to the $1154 price level with the April contract, and there still may be a few waves left to go before another much bigger correction.

The HUI blasted up as well but now has several big gaps that need back filling. 

The Fridays trading session could turn very violent early in the morning as swings in both directions can happen with the release of the jobs report.