Technical Updates

Dollar Index Will Be Strong After QE3

Dollar Index Will Be Strong After QE3

From FXTimes by Nick Nasad: QE3 Discussion (2 Videos)

“The current round of Quantitative Easing has been dubbed by many as QE infinity because it it open ended. The last 2 had fixed amounts of about $1.7 Trillion and $600 Billion respectively, while this one is $40 billion a month until at least the end of this year. Bernanke focused on unemployment and noted in the press conference that this approach is meant to guide the economy back to improvement in the jobs market, and not meant to last until full recovery.”

The following is latest our technical analysis for US Dollar Index.

Indicators :

– RSI Period 14 with 30 level as oversold and 70 level as overbought.

– The 4X1, 2X1, 1X1, 1X2 and 1X4 Gann Angels.

– Gann’s Price&Timing Study.

– Simple Moving Average 50 Period (Blue), 100 Period (Red) and 200 Period (Green) on the chart.

Dollar Index closed above Gann’s 4×1 angels as support from 2011.05.04 low.

Meantime presently decline, market tested Gann’s 1×1 angels that’s will bring the market go up testing resistance at least at 81.00 level.

RSI indicate oversold price as well.

And here Elliott Wave count from Elliott Wave Financial Service

Dollar index found some support lately but not for long as bounce should be wave (iv), part of incomplete C that still has a room for a decline towards 81.00 projected level. We will be looking for evidences of a low formation in that zone as then we will have five needed waves in C, and we know that after every five waves trend changes at least temporary.

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