Daily Archives: June 10, 2017

US Dollar Bear Market Review

Towards the end of last week, the US dollar started another rally from a recent low.  In early May the US dollar displayed what can count out as an expanded pattern, making it fit very well into the B3 wave of a zigzag. We can also get that correction into a potential 4th wave counter rally followed by another clean 5 wave decline. With the A5 waves and C5 waves alternating like this, I favor the zigzag pattern.

The US dollar has gone from a massive bullish high, and now is well into the 5th month of a bearish phase.  How big this bearish phase will eventually go is unknown, but there should be no more fresh bull market highs with the US dollar. In order for the US dollar to just be in a big bull market correction, we need for many more US dollar bears to show up. Even that will not work if the entire US dollar bull market that started in 2008, was just a big bear market rally. (Fake Bull Market)

It’s not just any bottom we are after as we need an extreme US dollar bearish mood before another big rally will come. Any US dollar rally could correspond very well with a counter rally in stocks, as they sure can love each other, during any stock mania moves.

In a big bearish move, any foolish price support forecast will never hold, or at least not for very long, as every bearish rally in the US dollar will be temporary at best.

Besides the US dollar topping at a potential “D” wave  in Primary degree, it would be pretty wild if that “D” wave is actually a 4th wave rally, in Intermediate degree.  Only time will help clear that up, but in the longer term, the US dollar bear market is far from over.

When the mass media celebrates how horrible the US dollar has performed, and they are pumping the value of gold, then we have to be ready for a very strong reversal.