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FX Weekly Report
The FX Weekly Report provides the latest, in-depth forex technical analysis about the FX market each week. By Pierre Charlebois.

USD Bear is now 60 + trading days old – Market rallies approaching 90 day calendar cycle

May 31, 2009 at 11:10 am • Posted in fxweeklyreport

This week I’m fully focused on the USD Index. From many perspectives it is entering oversold territory.

  • Potential Elliott Wave count suggests we are in the last 5 wave cycle
  • Trend is over-extending at the bottom of the channel
  • Indicators suggest oversold
  • COT (Commitment of Traders) at extremes
  • Trends are time mature

There is a likelihood of continued bear action to begin the week however evidence continues to mount that the current cycles are due for a sharp flip. My thought is once the sentiment changes it will bring on a strong counter trend.

USDindx_May_31_09

USDindx_May_31_09_hr

Cheers and good trading.

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