Tuesday, January 10, 2012

Dollar strength, euro & yen weakness, may be start of cyclic Elliott Wave trends: Tony Caldaro 1/9/12 special report

The U.S. dollar has moved from its low, then weakened but this may be merely a pullback in the greenback's new trend up. This according to Tony Caldaro's special report of Jan. 9, detailing analysis of the dollar, euro, yen, Swiss franc and implications for other currencies. In the past, the U.S. stock markets sometimes went up with a stronger dollar, so it doesn't have to be bearish. But it's important for investors and trafers to be aware of, either way. Many people expect the dollar to dwindle. Therefore, this idea that it will strengthen on a cyclical, longer-term basis will catch many off-guard as it unfolds.

Like any longer-term trend, this one will have counter-trend moves occasionally. So how you react to it and work with it will be a matter of your investing and trading timeframe and style. The portion I quoted below relates to the euro, since that's much in view nowadays. The bigger point is that there are big-picture trends at work, and they will influence the direction for the months and years ahead.

You'll want to read Tony's entire article explaining the longer-term cycles in these currencies. So below is a a link to that, along with a small excerpt from this special Objective Elliott Wave report to whet your appetite (thanks Tony!). You can always find his daily, weekend and special topical updates via his tweets as @OEWtony on Twitter, linking to his OEW website http://caldaro.wordpress.com/, or right here in the OEW feed at lower right side of the page):

The EURUSD pair peaked in 2008 at 160.20. Since then it completed another set of ABC Primary waves with lower and lower highs. This is somewhat similar to the price action in the 1990′s. With a long term downtrend now confirmed in this pair, we expect the current decline to continue until it hits around 116. A bear market rally should follow at that point into the 129-133 range by 2013. After that a decline to around 82, or more, into 2018.

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