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Re: usd/Artie *PIC*
In Response To: usd ()

DX has been stair stepping higher for a year now. Most recently it broke up over 83.64 price resistance in the early part of July and pulled back and tested the 82.90 previous rally high as support successfully. Price then broke out once again above 83.64 resistance and held for 3 days looking bullish. Note at that last high the negative divergences I mentioned then that showed a loss of momentum and a warning of trouble ahead. But price is king and a breakout is a breakout that must be respected as such until proven otherwise. Well that breakout only lasted 3 days and then broke down pulling back to that 82.90 support and the 3 month uptrendline 'area'. Note the spinning of its wheels at that support point trying to hold on and re-rally. Technicals continued to breakdown with most oscilators breaking below their center lines. Even the long term Modified MACD showed a negative divergence and a roll over below its signal line. Price has now clearly broken below 1st price support of 82.90 which suggests a pullback to 81 to 81.50 which is the next price support and the Fib 50% retracement level. The 11 month uptrendline is presently at 81 which should be solid support. While this doesn't seem like much of a pullback with DX any price move has dramatic effects on inverse markets. I've said many times DX should be a 3 digit or better yet a 4 or 5 digit number to properly reflect its impact and price changes relative to its effect on inverse markets. So a pullback to 81 or 81.50 will have a strong effect on many markets despite being only 2 to 3 point change from recent highs. All that is needed to see the Euro rally is another b.s. story out of Europe and the stage is set for that to occur. Keep in mind the U.S. presidential election in 3 months and historically markets rally into that time frame. That's what I see in this chart and trends on DX etc, fwiw. But financial markets now are like a downing man thrashing in the water looking for a straw to grab hold on to save itself. Anything and everything is possible now in dramatic fashion. Preservation of capital is always Job#1 especially in chaotic times like this.

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Re: usd/Artie *PIC*
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