Best Financial Markets Analysis Article Over the medium-term, like many other broad based indices, the dollar continues to consolidate in a rather large sideways range. Its boundaries however, are not visually discernable in looking out over the short and near term as we’re doing here.

Over the near-term, the dollar has been coiling in a contracting triangle from late May. Although it reserves the right to continue coiling for a couple of more weeks, the longer it does so, the more violent the unwind may be.

If it goes too far, and moseys its way right on through the apex without fanfare, well then nothing may come of it at all. However, a near-term upside break or downside breach of the pattern carries a directional impact on the order of 2 ½ - 3 ¼ points from the point of escape.

Short-term, we have circled capture of the 75.25 target from Wednesday, and draw your attention to a potentially potent buy trigger just above the market.

So long as the 74.84 pivot low holds, this short-term long entry set-up could jettison the dollar in excess of 0.50 cents in the blink of an eye.

Technically Speaking Video

I trust and hope that you have extracted something of actionable value from this edition of Technically Speaking.

Until next time,

Trade Better/Invest Smarter

By Joseph Russo
Chief Publisher and Technical Analyst
Elliott Wave Technology
Email Author

Copyright © 2011 Elliott Wave Technology. All Rights Reserved.
Joseph Russo, presently the Publisher and Chief Market analyst for Elliott Wave Technology, has been studying Elliott Wave Theory, and the Technical Analysis of Financial Markets since 1991 and currently maintains active member status in the "Market Technicians Association." Joe continues to expand his body of knowledge through the MTA's accredited CMT program.

Joseph Russo Archive

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.