USDOLLAR Channel Just above Current Level
Prepared by Jamie Saettele, CMT
The Dow Jones FXCM Dollar Index (Ticker: USDOLLAR) is at its highest level since January 2011. Last update noted that “near term structure is favorable above 10076 towards a new high but probably in a 5th wave. In other words, a new high probably gives way to a correction back below 10076 rather than the next major move. 10219 is a level to watch on the upside.” The index traded to 10218.99 today before coming off. Intraday action is suggestive of a reversal and a close below 10193.67 would satisfy requirements for a daily key reversal. This information combined with the resistance that looms from channel resistance just above the current level leaves bulls at risk of enduring a correction before resumption of the larger bull. 10047-10076 is support going forward.
LEVELS: 10310 10219 10154 10076 10047 10003
--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com
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