Worrying about the U.S. Dollar trading lower? It’s just a correction.
But for your doubters, let’s take a closer look.
The first view is the “market memory” or “lookback” – just two words that mean the same thing that I use to describe when I my chart view includes the complete amount of data that I feel reflects the
1) trend 2) important highs and lows 3) relevant last major moves (rallies and sell-offs)
The key words are psychologically relevant when it comes to this view because at some point in my analysis I will view the pair from within its market memory. For the daily chart, it’s one year.
Notice that since it’s early January, I have included data back to late December 2010. The view won’t always be exactly one-year, but get as close as you can. The angle of the 34EMA Wave in this view is what I use to determine the market phase. Here it’s a “twelve to two o’clock angle”.
The uptrend is VALID only as long as the 34EMA Wave angle remains at “twelve to two o’clock” and price action is supported above the 34 period EMA low. IF the Wave flattens out, the market trend will have shifted.