They say a falling dollar supports a rising stock market, so let's take a look at the Daily Dollar chart, which is in a steep down channel ever since the 6/7/2010 High. The next Daily Geometric CIT is on 11/16 and 12/8. There is also a regular 58 TD cycle due around 11/16, which confirms the geometric CIT. Price wise, there is double channel and TL support around the 76 area. If wave 1 or A = wave 3 or C, then 74.93 is a potential down target.
The weekly Dollar broke below its Fork support, suggesting further weakness ahead. It has so far retraced 66% of its recent advance. The 78.6% retrace is at 77.28, which is right near Key channel support around the 77.45 area.
The next 2 weekly geometric CITs are the 5/6/2011 and 7/8/2011 weeks. It has a regular 82 week cycle next due 7/8/2011 wk, supporting the geometric CIT.
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