Daily Bars
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
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Jamie is the author of Sentiment in the Forex Market.
