Big Dollar Weakens
By Colin Twiggs
May 14, 2009 1:00 a.m. ET (3:00 p:m AET)
The euro is testing resistance at $1.37 against the greenback. Breakout would signal a primary up-trend with an initial target of $1.45, calculated as 1.37 + [ 1.37 - 1.29 ]. Reversal below support at $1.29 is unlikely, but would test primary support at $1.25.
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US Dollar Index
The US Dollar Index completed a large rising wedge reversal pattern,
indicating a primary down-swing.
Failure of support at 83 confirms the signal
and offers a target of 75, calculated as
85 - [88 - 78]. Reversal above 83, however, would warn of a false signal — and another test of 87.
The dollar penetrated support at ¥96, completing a head and shoulders reversal. Expect a test of support at ¥87. Retracement that respects the new support level at ¥96.50 would confirm the down-trend. Reversal above ¥96.50, however, would warn of a false signal — and a test of ¥100.
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The Aussie dollar broke through resistance at $0.7300 against the greenback, signaling a primary up-trend. Expect retracement to confirm the new support level, but the long-term target is the September high at $0.8500. Reversal below $0.7000 is now unlikely, but would test primary support at $0.6300.
Craving or desire is like a great tree having many branches. There are branches of greed, of ill will and of anger.
The fruit of this tree is suffering, but how does the tree of craving arise? Where does it grow?
The answer is that the tree of craving is rooted in ignorance....... the inability to see the truth about things, to see things as they really are.
~ Zen Guide: The Second Noble Truth