USDOLLAR Resistance Expected above 10100
Prepared by Jamie Saettele, CMT
The Dow Jones FXCM Dollar Index (Ticker: USDOLLAR) reversed from its lowest level since 5/11. The last few days’ comments were to “Allow for corrective strength above 10060 before lower levels are registered.” The index may extend a bit higher. Expect resistance in the coming days from 10087 and 10110. The latter level, defined by the 61.8% retracement and former support, would figure to provoke a reaction. Keep in mind the short term internal downward sloping channel and 100% extension of the decline from the July high at 9986. A deeper decline into mid-August (as per the 1995/96 model) could reach the 100% extension of the decline from the June high at 9940.
LEVELS: 10020 10046 10064 10087 10110 10133
--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com
To contact Jamie e-mail firstname.lastname@example.org. 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 email@example.com
Jamie is the author of Sentiment in the Forex Market.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.