USD is telling a story on a possible crisis soon 7-4-2013

Chart: http://danericselliottwaves.blogspot.com/

Just would like to share this chart by Daneric and would like to express what this could mean.

Basically the US Dollar Index (USDX) is an index (or measure) of the value of the United States dollar relative to a basket of foreign currencies.

It is a weighted geometric mean of the dollar's value compared only with "baker" of 6 other major currencies which are:

    Euro (EUR), 57.6% weight
    Japanese yen (JPY) 13.6% weight
    Pound sterling (GBP), 11.9% weight
    Canadian dollar (CAD), 9.1% weight
    Swedish krona (SEK), 4.2% weight and
    Swiss franc (CHF) 3.6% weight

USDX goes up when the US dollar gains "strength" (value) when compared to other currencies. (Wikipedia)

Now that we know that if USDX suddenly gaps up and break out of its 10yr downtrend lines, it gains strength, and #1 currency to get hammered down is EUR, a low EUR is also bad,which means EU crisis is possible happening or its Economy is not doing good. The Head and Shoulder pattern targets 100, meaning 1:1 for USD:EUR is probable, shocking? lets see in years to come. Actually it's possibly going there somehow, US economy is strenthening slowly,and EU in any area is deteriorating.

Putting all together, this chart could mean that if USDX breakout happens, a EU crisis or Asian crisis in particular could be in place soon or in the years to come.

** USDX breakout means USD strengthens and investors return back their money to US Dollar, and may not directly mean US Equities will fall.

How amazing charts are! Enjoy!