USDOLLAR Spikes Higher after Completing Correction
60 Minute Bars
Prepared by Jamie Saettele, CMT
I wrote last week that “the Dow Jones FXCM Dollar Index (Ticker: USDOLLAR) decline from the December high is in 3 waves and the first leg of a larger impulse is complete at 10039. Expectations are for weakness below 9946 in order to complete a corrective decline from 10039.” After trading to 9942 on Friday, price rocketed higher. Caution is warranted however as the rally was in a spike, which tend to serve as traps. In any case, 9980/90 is support and the bullish count is valid against 9942. The alternate count is still bullish but delayed as the spike high would compose wave B of the correction.
Bottom Line – flat
--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com
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