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FOREX Technical Analysis: USDOLLAR Rally Rejected Shy of 10000 Again

By , Sr. Technical Strategist
09 November 2012 02:19 GMT

Daily Bars

FOREX_Technical_Analysis_USDOLLAR_Rally_Rejected_Shy_of_10000_Again_body_usdollar.png, FOREX Technical Analysis: USDOLLAR Rally Rejected Shy of 10000 Again

Chart Prepared by Jamie Saettele, CMT

FOREX Observations: “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. The problem one faces now is that the rally from Wednesday’s low is also in 3 waves. As such, one cannot rule out a dip below Wednesday low.

FOREX Trading Strategy Implications: Look higher as long as price is above 9901 towards 10032/41 but allowing for a dip below Wednesday’s low.

LEVELS: 9901 9923 9950 9981 10032 10046

--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com

To contact Jamie e-mail jsaettele@dailyfx.com. Follow me on Twitter @JamieSaettele

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Jamie is the author of Sentiment in the Forex Market.

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09 November 2012 02:19 GMT