By all reckoning, the US dollar had a good week. It rose against nearly all the major currencies, and against many broke out of recent ranges. Ironically, the dollar gains more mostly scored before the surprisingly strong Q1 GDP print of 3.2%. In fact, all the major currencies but the Norwegian krone recouped some of their recent losses ahead of the weekend. Nokkie appeared to have been weighed down by the biggest drop in oil prices in a couple of months after setting six-month highs earlier in the week after the US announced it was not going to renew any waivers that exempted a handful of countries from the embargo against Iran.
Some purists argue that just like space has a shape so does nature. Technical analysis is about uncovering these shapes in prices. Fibonacci relationships exist in nature, for example, they can be found in the markets too. Another school argues that technical analysis is a study of group psychology. Individuals may learn, but groups apparently do not, and behavior (patterns) are often repeated. Two elements of market psychology have percolated into pop culture.
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