Prechter draws parallels between the current action and that of 1987 just prior to the crash which occurred in October of that year. At that time the dollar was slipping in the background as has been the case for the dollar since June, however, he is calling for the dollar to rally from here.
Below is a daily dollar chart on the left showing the recent trend, with the longer term trend shown on a monthly chart on the right:
He notes that the dollar created 5 waves up before turning down, as have I, and believes that it is likely to rise from this point due to the fact that a 5 wave formation tends to show the primary direction. Keep in mind that waves are a matter of duration – you may have a medium term uptrend within the context of a larger term downtrend and visa versa (ht RRH, and apologies for the leading propaganda).
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