Wave analysts waivering on U.S. dollar. (U.S. Dollar Index)

Futures (Cedar Falls, Iowa), October, 1989 by Stein, Jon

Wave analysts waivering on U.S. dollar If you think economists are having a rough time figuring out where the U.S. dollar is going, consider the battle among Elliott Wave technicians.

Elliott Wave analysis slices markets into alternating, generic patterns: Markets move in five waves in the direction of the trend and then go through a correction pattern of three waves. For the dollar, as measured by the U.S. Dollar Index, Elliott analysts these days seem just as confused as the novices.

The U.S. Dollar Index has been in a primary bull trand since early 1988, a rally most in the Elliott camp view as a correction. In June, the index hit 106.56, its highest peak since 1986. Traders are eager to find out whether this top was the kickoff of a new bear move...

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