US Dollar´s Secular Bear
This is the big strategic picture. In the financial markets context is absolutely crucial and nothing can quite put current price movements into their proper context like seeing them within the prevailing secular, or long-term, trend. In the dollar’s case, this long-term trend is indisputably down. This powerful dollar bear market has been underway since the summer of 2001 and has yet to show any signs of abating.
This chart highlights the relentless final plunge of the fourth major downleg of this secular dollar bear and the subsequent fourth major bear-market rally. These short-term tactical trends move within long-term strategic trends. As you recall from above, all of the action on this entire short-term price chart is contained within the dollar’s long-term downtrend. While not as important as strategic trends, tactical trends are still very valuable for speculators to follow.