Chart Prepared by Jamie Saettele, CMT
FOREXAnalysis: “The Dow Jones FXCM Dollar Index (Ticker: USDOLLAR) low is on the first day of the month thus a more bullish outcome should be respected as long as price is above that level (9901).” Notice that declines since 10/10 are in 3 waves, which indicates that weakness is corrective. Price is now nearing a high risk area for bulls defined by the 100% extension of the rally from the September low, 50% retracement of the decline from the June high, channel resistance, and June low. Expect a reaction.
FOREX Trading Strategy: Look higher towards the mentioned confluence of levels but don’t expect a clean break through on the first attempt. The September high at 10046 is also in the way.
LEVELS: 9961 9973 9991 10032 10046 10100
--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com
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