The Dollar index broke the recent swing low and started to extend down in wave iii of 3 of 3, to 97.1 next. This means that a major fall in the dollar has started. This should cancel out most of the bullish dollar wave counts that were still open.
The US bonds retraced 61.8% and started to rise again, Wave C up for bonds should mark another risk off for US equities.
Adam Smith Associates offers trade & commodity finance related services & solutions to its domestic and international clients. Views expressed in this article are purely of the author – Mr Rohit Srivastava – a leading technical analyst. Visit www.adamsmith.tv for services offered by Adam Smith Associates Pvt Ltd