>DOLLAR INDEX

The Dollar index based on the available data show the fall has been a corrective pattern of A-B-C which can be converted into W-X-Y pattern with Wave W complete.

The current rise can be for Wave X.

Wave X will be a corrective structure with 3 wave pattern which can get carried up towards the 102 from current level of 80.50.

The above indicated Wave structure is valid till the low of 71 is not violated.

Alternative count structure can be more bullish that what was indicated above. Corrective wave structure gets complete at 71 with A-B-C structure and new up move and impulse has already began. Minor degree Wave 1 is complete and Wave 2 is in progress.

Dollar index moved down from 121.29 (2001) to 71(2008). In the same period of the world equity indices have shown a rise had made new highs during the same period broadly.

In the same period Crude Oil also showed a rally which had directly correlation to the equity markets.

In the same way HG COPPER on Comex showed a rally in the same period from 60$ to 426$. Only difference is that made a top six month later. Similar tendency has been seen in other metals.

Conclusion

On the whole, we can see direct correlation between the financial and commodity market against the dollar index.

Source: COMMODITIESCONTROL