- USDOLLAR closes at near 4-month high
- Index testing key pivot
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Range trading has been the overriding theme this week in the FXCM USDOLLAR Index (equally weighted basket of USD versus EUR, JPY, AUD, GBP) as the market has been awaiting this morning’s employment figures. We should note that the index did manage to record its highest daily close in almost four months yesterday, but it still could not settle above the 78.6% retracement of the April/May range around 12,050. As the index has failed several times over the past few weeks to close above this level, it remains a clear hurdle to a more important run higher. If we do manage a daily/weekly close above 12,050 today we would expect a re-test of the April highs in short order. A break below last week’s low around 11,965, on the other hand, would signal that a deeper correction is underway.
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USDOLLAR Daily Chart: August 7, 2015
Charts Created using Marketscope – Prepared by Kristian Kerr
LEVELS TO WATCH
Resistance: 12,050 (Fibonacci), 12,100 (Fibonacci)
Support: 11,965 (Last week’s low) 11,940 (50-day MA)
Strategy: Buy USDOLLAR
Entry: Buy USDOLLAR on a daily weekly close above 12,050
Stop: Daily close below 12,000
--- Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com
To contact Kristian, e-mail email@example.com. Follow me on Twitter at@KKerrFX.