Dollar still building a medium term base

The Dollar is still in the process of building a medium term base. We like to highlight the resemblance to 1995 .

Our TimeCycles model seems to project the way. As long as the74 level holds we assume the DXY wil try to take out the 76 level.

Bear in mind that when the Dollar rallies all categories of the RISK TRADE will suffer.

You need a fundamental story to back up this cycle work then just try to imagine what will happen to the Dollar if OBAMA comes up up with a $4bn savings program to resolve the debt ceiling discussion by next week (not the 2-3 he is tying to save his ass but just the 4bn S&P is demanding and the Republicans must get politically...)

...and i'm not even taking into account the consequences of a failed greek/italian Euro pipedream ....