Dollar Fulfills Wave Objectives…

Dollar Fulfills Wave Objectives…
Poised for Multi-Month Low;
Bitcoin Correlation Growing.

06/10/17 Weekly Re-Lay:

 

The Dollar Index remains negative but spiked to new intra-year lows during the 22nd week of this decline – fulfilling a significant wave relationship projection.  That low completed the 3rd of 3 successive declines – since March 2015 – each with almost identical duration (22–23 weeks).

The first two were of equal magnitude (~8.50 pts) while this latest was of lesser magnitude – a potential sign of underlying strength… or at least resilience.  On a pattern basis, the monthly trend pattern set the stage for an initial low in early-June & a possible 1–3 month rebound to follow (after which another wave down could be seen).

If confirmed, that has the potential to last into the time when the next multi-month peak has been expected to take hold – in early-Sept. 2017, the next phase of a 35–36 week/~8-month low-low-high-(high) Cycle Progression (that followed a similar, 36-week rally).  It would also represent a .618 rebound in time (22 weeks dn/13 weeks up).

The Euro is the inverse BUT not reflecting the comparable level of strength.  It has only neutralized its monthly downtrend twice, setting the stage for an early-June peak & reversal lower.  That was corroborated by the weekly LHR pattern, projecting a peak by June 9th.

It set that high without turning its intra-month trend up… and has since turned that trend down.  It would take a daily close below 1.1175/ECU to give a more convincing sign of a multi-week top…

The Dollar Index fulfilled wave projections with a drop into early-June… and then rebounded, twice neutralizing its daily downtrend.  It would take a daily close above 97.22/DXU to reverse that trend to up.”

 

Dollar poised for rebound from June 5–9th cycle low, after fulfilling downside wave objectives.  Multi-month low possible.  Bitcoin & Ethereum expected to reverse lower, following June 5–11th cycle peak (see 6/07/17 Alert).  July/August 2017 holds intriguing potential for Bitcoin and other cryptocurrency.

See Weekly Re-Lay & INSIIDE Track for additional analysis.