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FOREX Technical Analysis: USDOLLAR Rally Stalls at Channel Resistance

By , Sr. Technical Strategist
16 November 2012 01:20 GMT

Daily Bars

FOREX_Technical_Analysis_USDOLLAR_Rally_Stalls_at_Channel_Resistance_body_usdollar.png, FOREX Technical Analysis: USDOLLAR Rally Stalls at Channel Resistance

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). I wrote yesterday that “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.” The reaction at the channel does suggest that this level will not be broken easily. Expect some corrective activity into 10000/20.

FOREX Trading Strategy: I favor buying dips into 10000.

LEVELS: 9961 9991 10020 10060 10100 10173

--- 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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16 November 2012 01:20 GMT