Elliott Wave 5.0 "Reboot"

Friday, March 4, 2016

US Dollar Weekly Chart Review

The US dollar has been wobbling around like a top losing its momentum. It still has all the look and feel of a triangle and it may be that we still need another lower low as an "E" wave decline.  If this is true, then we still should see gold rally when and if the markets also crash one more time. 

A double zigzag decline would work alright, and none of the bottoms that we have had will hold as support.

When it does make a downside breakout, then chances are good a reversal would happen quickly and the US dollar would roar the opposite direction one more time. The US dollar would then break another record bull market high and gold would crash in response.  This US dollar pattern looks much like the stock market pattern, but just at a smaller physical scale. 

Short term I would have to stay bearish, but only until a downside breakout occurs. If and when that completes, then I would bet it would be time to dump all gold and gold stocks, as well.