USD has more down side than up right now

I don't know why, I have never the chance to visit USA since birth. I am a frequent traveller and been as for as Canada which is right next to USA, the closest I am is at Nagara fall which I could see US soil right across the rive. Yet, I am having a lot of interest on USD. Many people consider USD junk, tissue or even toilet paper. But can the world live without USD at the moment, I afraid not. It is the common currency for most business transaction and any company needs to trade with other countries need USD. The demand is there.


Fig 1 USD Weekly Chart

As I look at USD, it is in process of fulfilling its head and shoulder objective to reach 13,578. Both RSI and Stochastic areat the bottom poising for reversal. So I guess the next week or to it will be pulling up to touch the neck line.

I am at the same time seeing a bigger head and shoulders, except that this guy's right shoulder is pretty weak. The pattern stretched from July 2008 till July 2009, a full one year. Now I am not sure how prudent is this head and shoulder. If it is being fulfilled, the target would be 12.48.The only problem is that the neckline is too steep.

Anyway, if this is indeed a genuine head and shoulder, then I should also see a retracement to th neck line at above 14500 before coming back down again.For short term, the down side is limited and we shall still see more upside here.