2010-09-30_0736USD

Inverse to the Euro, the Dollar appears to be very near completing the intermediate wave (2) correction that we have been expecting in both currencies.

The sentiment for the dollar is very bearish at this time, everyone has thrown in the towel. In fact it is even more bearish than what it was at the December 2009 lows. This is what we most often see at wave 2 lows. Our wave count indicates that perhaps we will see just one more micro wave down to complete the pattern before the dollar turns back to the upside. With our expected completions of a turn in the equities, we expect to see the inverse move in the currencies to coincide. Today should be an interesting day.