US Dollar Intraday Bear Market Update

The US dollar has made some violent moves lately. One minute it can be a calm decline and the next thing you know it wakes up and swings violently in both directions. Any asset class that is related to commodities has some serious leverage to it. I consider all currencies as a commodity as well. The majority could be just waking up to the fact that the US dollar is in a bear market, which is usually the time when downside consensus forecasts start coming out. This news is a little harder to find right now, but on major turnings, there will be no doubt in how the public will be feeling.

I dropped my degree level down by one degree, which makes the wave action seem more sensitive, which can also get us out of a trap. The degree level is so small that I’m scraping the very bottom of the list.

Any US dollar bear market is not over until more bears jump on this bandwagon going south. On the 10th a violent move up could also be part of a diagonal which contains mostly zigzags. We are presently on a very small move up, but could see more upside before it’s finished. It’s the US dollar decline which is the main driver of the gold price, but other times the inverse correlation is impossible to see for short periods of time.

We will have to wait until next week before we can find out how much more downside in the USD we’re still going to get. We can get a strong counter rally with the US dollar at any time, but it doesn’t mean the bear market is over.

Short term we could see some wild bullish moves, but in the bigger scope of things I’m still very bearish.

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