US Dollar Intraday Peak Review

Last Friday the US dollar peaked and then started to decline. No real downside spike has formed so this could be the start of the next leg down. I have to keep an eye open for another decline that can be a fairly smooth declining impulse, but we could also get a drawn out zigzag decline.  The ultimate low to beat is the 91 price level,  as a complete retracement is about the only thing that will confirm that the entire October rally was just another bearish rally or part of one.

I started with Micro degree and will update the degree level as this bearish leg starts to play out. If a shorter zigzag forms, then another wave 4-5 could get added on, but this is the least of my favorite alternatives.  If the US dollar bearish mood returns too soon, then an early counter rally would be close at hand.  I will not emphasize the COT reports too much as they work best at the extremes.

Our Canadian dollar has also turned in the last day or so, but it eventually must reach a new high, if its bullish cycle is just a correction.

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