Daily Bars

eliottWaves_us_dollar_index_body_usdollar.png, USDollar Fails Again – Price Nears Trendline

Prepared by Jamie Saettele, CMT

The Dow Jones FXCM Dollar Index (Ticker: USDOLLAR) realized its 4th largest decline of the 2012 on Thursday and is on the verge of taking out the April1 low of 9893. Doing so would negate my bullish bias from a seasonality perspective (early month range and breakout) and shift focus to the trendline that extends off of the February lows and 100% extension at 9843 (reinforced by former congestion). I’ve included a large view of RSI to highlight that the indicator is at a level that has been coincident with lows in recent months.

Bottom Line (next 5 days) – bottoming?

--- 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.