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Chart shown here is the US dollar Weekly index chart. From the charts it is clearly witnessed that dollar may
test 200day MA and 20day EMA which meets at a common point. Possibly it would bounce back from the supports
and lead to surge in dollar to record high once again.
So what does a surge in dollar mean to us?
Possibly another round of global selling in the world markets. Also yen nearning the OCT,2008 lows 91 says that
global selling is on cards. And the recent surge in commodity prices especially in crude could be possibly a temporary one.
In other hand breakdown below 200day MA will lead to long term bearishness in dollar. Which will lead to
surge in commodity prices once again especially gold and Crude which showing enormous amount of strength for the past two
days
Here is a elliot wave interpretation and his view on dollar movement from Corey Rosenbloom author of afraidtotrade.com
http://blog.afraidtotrade.com/oddities-in-the-us-dollar-etf-uup/
