Dollar Poised for Low
10/31/12 INSIIDE Track:
“The Dollar Index has fulfilled most of what was expected for an overall decline from the July cycle highs into October. The July 2012 peak fulfilled a 40-month high-high-(high) Cycle Progression that now includes significant peaks in Nov. ‘05, March ‘09 & July ‘12… and looks ahead to late-2015.
An important low was expected in Oct. 2012 – in line with multiple geometric cycles. As of now, the low was set in mid-Sept. (although the Euro set its highest daily close on Oct. 17th) – indicating that it either bottomed a couple weeks early or is still yet to set a final low… perhaps a couple weeks late.
If the Dollar creates a spike low in early-Nov., it would reinforce the longer-term cycles (including an 18-month low-low-low Cycle Progression, equivalent to the 75-week cycle in late-October). In either case, traders/investors should not lose sight of the forest as a result of a misplaced tree…
The overall outlook for the Dollar Index is fairly bullish for 2013 (this is why it is important to distinguish between the discussion on a forthcoming fundamental event or shift in 2013 and the technical outlook for price action during the coming year).
In addition to the 18-month cycle just mentioned, the monthly trend & intra-year trend are in a potentially bullish setup and the monthly 21 MAC is just beginning to turn up (a signal that usually precedes a second, and often more dynamic, advance)..”
Dollar entering potentially bullish period, following Oct. 2012 cycle low. 6–12 month rally expected… as part of overall advance into next phase of 40-month high-high cycle – in Nov. 2015.