Analyst: Dollar Close to Breaking Below Five-year Pattern

 Econintersect:  A six year long trading pattern in the U.S. dollar index could be broken to the downside this month (March 2011).  This observation has been made by Erik McCurdy, senior market technician for Prometheus Market Insight.Trading in the first four days of March have seen the dollar enter an area which, if it were to persist unchanged, would put a point on the monthly chart of dollar index that is below the lower edge of a symetrical triangle that covers more than five years of trading.

McCurdy says that such an occurrence could indicate a sharp decline in the value of the dollar is coming.  He suggests a 6-7% decline would be the minimum to expect.

Sources:  GEI Investing and Promethius Market Insight