Monday, February 13, 2006

Shortly on USDX

Just shortly on USDX since I've screen it. Charts tomorrow.
Now the drop from Nov 16 has a finished ZZ structure and now the question is if it is a possible XX so we can see a continuation above the high, or is (A) or (W) of a possible Flat or DZ (Double ZigZag).
If it is a part of a Flat, than the move up from recent low (87.83) could qualify for a developing ZZ with A finished IM and possibly B finished so C in progress for a retest of a high for a nice (B) of a Flat, or
if it is a part of a DZ, then this recent move up could qualify for an (X) of a possible DZ down, so we can expect the next move to be a ZZ down (which has internal structure of 5-3-5 or IM - any 3w - IM)

In general, and I'll try writing more on this, I think 2006 could turn into an endless range trading, although as I wrote few times before on MTec, there are some serious structural weaknesses in US economy and society that could trigger some serious shifts in the "mood". I don't expect it to happen soon, but I would not rule it out neither even that it seems that the US bull is still raging.
ID

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