Thursday, July 7, 2011

Friday Dollar Analysis

Last week, I wrote the following about the dollar:
I'm still thinking the dollar is forming some type of bottom at this time. The EU situation appears to be at a head, giving the market "closure."
This week, the dollar continued its consolidation

The dollar is forming a classic triangle consolidation pattern right now, complete with decreasing volume. Note the EMAs are all tightly bundled and moving near horizontally.

Notice the A/D line indicates fresh money has not entered the market, which is confirmed by the low reading of the CMF. Also note the MACD is vacillating around a "0" reading right now.

This is a classic consolidation pattern in action.