US Dollar Crunch Time
Currencies / US Dollar Apr 10, 2008 - 10:45 AM GMTBy: Black_Swan
‘Dollar’ and ‘Troubles’: two words that seem to go hand‐in‐hand these days. Well, if you’re disturbed about how poorly the dollar stacks up against major world currencies, I have bad news. Things could get much worse.
Normally traders use bar and candle charts in analyzing currencies and whatever else they’re trading. This allows them to pinpoint key intraday levels that may come into play on a very short‐term basis.
A line‐on‐close chart, on the other hand shows simply the open and close from session to session. It’s a more basic approach but tells the story nonetheless.
The above chart certainly tells a story – one that doesn’t look good for the dollar. Combine the recent stabilization phase with a test of all‐time closing lows and you’ve got a recipe for disaster. A breakdown out of the triangle pattern in the above chart could send the dollar on another substantial push lower.
By John Ross Crooks,
Black Swan Capital LLC
http://www.blackswantrading.com/
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