JLM

Five Forces Driving the Euro Down

The US dollar Index has been in a nice tight downward channel since late 2005. It is currently testing the top resistance line of the channel. How one can be so sure it will break out of its channel to the upside at this point is interesting to say the least. It looks to me like a 5 wave drop since 2005 so any upside at this point is purely corrective from a technical vantage point. A fundamental shift hmmmmm. The 'bottom it carved out' was simply the index hitting the lower support line of the channel.