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.
FOREX Trading Strategy Implications: As long as the USDOLLAR is above the 11/1 low of 9901, look higher towards the Fibonacci confluence in 10030s. If interpretation of price action composing a flat since Wednesday is accurate, then price should stay above Friday’s low.
LEVELS: 9901 9923 9950 9981 10032 10046
--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com
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Jamie is the author of Sentiment in the Forex Market.