Do you remember 2008, the heart of the 2007-2009 financial crisis? Some memorable highlights include Lehman Brothers' bankruptcy, the recognition of the collapsing housing bubble -- and, in September 2008, the sharp drop in the value of Asian currencies against the U.S. dollar.
That last part -- the Asian currency mini-crash -- may ring a bell because just a few days ago, something similar happened again.
EWI's Asian-Pacific Short Term Update editor Chris Carolan warned his subscribers ahead of time that Elliott wave patterns were pointing to a sharp rally in the U.S. dollar against Asian currencies. Wrote Chris in his September 8 Update:
"The financial crash of 2008 saw a sharp U.S. dollar rally against most currencies. We're beginning to see the potential for a U.S. dollar low in place.... The weekly Jurik RSX indicator appears bullish for the U.S. dollar..."
And this is what happened:
"The Asia Dollar Index …tumbled 3.8 percent this month, poised for its biggest loss since the Asian financial crisis in 1997.
-Bloomberg, September 27, 2011
Here are the charts of the Korean won and Singapore dollar against the U.S. dollar that The Asian-Pacific Short Term Update subscribers saw before and after the collapse in the Asian Dollar Index, which tracks the region's 10 most-used currencies (excluding the yen) against the U.S. dollar.
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On September 21, The Asian-Pacific Short Term Update commented on what had happened in the market:
"The green arrows on the chart mark the September 9 weekly bar when [my U.S. dollar-bullish] comments were made. The huge subsequent dollar rally against the won, Singapore $ and rupee [is] remarkable."