Why The Dollar Is Likely To Rise

From Elliott Wave Int.

Bearish sentiment for the buck TODAY is greater than it was in late 2009 -- even though prices are higher. To illustrate this paradox, the October 8 Short Term Update presents the following year-to-date close-up of the dollar versus Daily Sentiment Index (courtesy of www.trade-futures.com)



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As we have argued in an earlier post, we believe the dollar is due for a rally very soon. Target for the Dollar Index is in the 90 to 92 range. We expect this may be one of the last big rallies for the dollar as talk of official devaluation is beginning to circulate.
We remind our readers to consider how unsuccessful Japan has been in attempts to reduce the value of its Yen, despite QE. It is our anticipation that the Fed will find dollar debasement a bit more difficult then they expect.

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