Monday, 21 June 2010

13:39 BST - Dollar Index Update

I can count s complete zig zag on the dollar, as shown in this 60 min chart:

Whether its the entirety of the correction or just the first of a double zig zag or a zig zag within a double three, remains to be seen. My favoured count (see the various counts here) is that we are completing wave [iv] of minor 3 (we've retraced 38.2% of wave [iii]). If that's right, we should rally now in a wave [v]. However, I'll be on the alert for the risk of a deeper correction. Here's the daily chart: