AS SHOWN ABOVE IN GRAPH 2, OUR ANALYSIS WAS DEPEND ON: HOW THE FED CAN CONTROL IN YIELD CURVE, AND ONE OF THE MAIN PILLARS OF TECHNICAL ANA;LYSIS "HISTORY REPEATS ITSELF" NOTICE, STEEP DECLINE FOLLOWS BY DISTRIBUATION AND SO ON..... HOW MANY TIMES HAS THIS HAPPEND??
DISTRIBUATION PHASE WAS A REVERSAL PATTERNS LIKE TRIPLE TOP OR D.TOP BUT HERE THIS REVERSAL PATTERNS DOES WORK AS A CONTINUATION PATTERNS, IT IS ALSO CONSIDERED A PART OF FLAG OR PENNANT
IN FACT, WHEN WE LOOK AT THE US DOLLAR WE SHOULD TAKE CARE ABOUT 3 THINGS THAT AFFECT THE GREENBACK, GOLD, EURO, US10Y YIELDS(FED‘S MONETARY POLICY INDIRECTLY) TO SEE THE FULL PICTURE, AS I MENTIONED YESTERDAY IN GOLD ANALYSIS(https://stockcharts-home.blogspot.com/2020/08/gold-update_27.html) , EURO ON 19/8/2020(https://stockcharts-home.blogspot.com/2020/08/blog-post_19.html), THEY ARE IN A CONSOLIDATION PHASE AND ANOTHER PUSH HIGHER TO COMPLETE MOST LIKELY 3 WAVES UP OF IMPULSIVE SEQUENCE
ON THE CONTRARY, US10Y YEILDS IN A DISTRIBUATION PHASE AND ONE MORE PUSH DOWN TO COMPLETE CYCLE OF FIVE WAVE DOWN AS C WAVE OR A OF WAVE Y LOOK AT (https://stockcharts-home.blogspot.com/2020/07/us-10yt.html) ON 14/7/2020, ANALYSIS OF THESE 3 FACTORS FAVOR OUR PERSPECTIVE IN GRAPH 1 , THAT US DOLLAR IS FORMING A TRIANGLE AS WAVE 4,AND THEN FURTHER DECLINE INTO WAVE 5
OKAY LET‘S TRY AND SHOOT FOR 88.5-90
EVENTUALLY, THE FED‘S NEW POLICY SUGGESTES THE CURRENT ULTRA LOW RATES WILL STAY LOWER FOR LONGER, THEREBY PRESSURING THE DOLLAR IN SHORT TERM ONLY, THIS IS WHAT I THINK, ACCORDING TO OUR ANALYSIS IN GRAPH 1
AFTER THE WAVE 2 IS COMPLETE , EXPECTED SHARP RALLY TAKES PLACE TO HIT A HIGH ABOVE 103.96, SO US DOLLAR IN LONGER TERM GONNA GO UP
