September, 1, 2017 US Dollar Intraday Bullish Review

About mid August the US dollar peaked and then started a very ugly decline which I can get fit into a diagonal.  The US dollar crossed to a new low with a 3 wave move, not an impulse by any stretch of the imagination. It sure looks like a diagonal 5th wave, followed by a violent reversal right back up again. I show that there is the possibility of another correction still to play out. Straight up moves can be very deceptive, making the “A” wave another potential 4 wave peak as well. 

In the next few weeks we should know more as the USD can resume its bearish trend without pushing to a new high. This would retrace the entire 5th wave decline before it resumes its bigger bearish trend. 

A declining US dollar makes most imports cheaper to buy from the USA, but would certainly increase any inflationary forces already in progress.  True inflation can only happen when wages increase dramatically every year like they did back when I started to work in the forest industry. With pay raises being so low in general today, this will have limited impact on inflation numbers in the future. 

I may rework the “D” wave top I have used, but I don’t want to do that too early as a few other indicators like the COT reports would have to shift first.

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