Daily Bars

eliottWaves_us_dollar_index_body_usdollar.png, USDollar Coiled to the Extreme

Prepared by Jamie Saettele, CMT

All you need to know right now about the Dow Jones FXCM Dollar Index (Ticker: USDOLLAR) is that 9893 defines the trend (above is bullish and below is bearish). This thing is coiled and primed to explode. A drop below 9893 would negate my bullish bias and shift focus to the trendline that extends off of the February lows and 100% extension at 9843 (reinforced by former congestion). Short term pattern remains constructive (impulsive rally from 9899.42 and corrective decline so far from 999.64) and the continued bounces off of 50 in RSI are a bullish ‘tell’.

Bottom Line (next 5 days) – higher

--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com

To contact Jamie e-mail jsaettele@dailyfx.com.  Follow me on Twitter @JamieSaettele

To be added to Jamie’s e-mail distribution list, send an e-mail with subject line "Distribution List" to jsaettele@dailyfx.com

Jamie is the author of Sentiment in the Forex Market.