Monday, 21 June 2010

18:29 BST - Dollar Update

Here's the 60 min chart of the dollar index, which I've overlaid with esignal's effort at ichimoku (unfortunately, the cloud doesn't extend into the future as its supposed to, but the other components are fine):

Dollar 60 min chart with ichimoku overlay:

You can see that we may have the first sign of a trend change. Referring back to my weekend post on ichimoku charts, you can see that the lagging line (green), which lags by 26 periods, can  has moved above price and price is above the turning (blue) and standard (red) lines. We now need to see the lagging line stay above price on any pullback in price (I've marked on the chart an example of this happening).

Ideally, I also want to see both the lagging line and price get above the cloud and find support there on any pullback - the cloud is seen as resistance when price is below it.  Failure on this front would start to suggest that we are in for more of a downward correction and the count putting us in wave [v] of minor 3 may not be correct.