USD Unitary Markets
Today's market forecast: "A giant carry trade enforced to all asset classes by every quant fund out there" from Zero Hedge."A quick look at the USD index makes me think we are forming an ending diagonal. I was wondering about that looking at EURUSD yesterday, and it seems other Elliott Wavers out there are making the same observation about the Dollar index. The attached chart shows the ending wedge we are forming, and would indicate that the DXY is going to chop lower, a process that apparently could last another month and a half if we are out of luck... And then we would have a brutal reversal and USD strength. To get a good idea of what an ending triangle looks like take a look at AUDUSD last year, it's as textbook as it gets. And don't forget that there is often times an excess on the last leg past the support before it reverses!"
And from Daneric's Elliott Waves
"Looks like the ending diagonal is perhaps in the making as I suggested a few weeks back. It may be ending but somehow I think we'll have a drumbeat of "dollar is doomed" stories for the next few weeks for the final waves."
So thats the consensus folks. Can't say I disagree.