Chart Prepared by Jamie Saettele, CMT
FOREXAnalysis: I wrote Tuesday that “The USDOLLAR dropped into 9923 (11/7 low) today but I find the channeling nature of weakness from the 11/21 interesting given the previously discussed 5th wave truncation at the 11/21 high. I remain on the lookout for a low and the current level (channel and 11/7 low) would be a good place for a low to form.” We got the low now the question is how significant is the low. It seems obvious that the decline from the November high is a ‘5’ but the truncation scenario would indicate the top is unorthodox on 11/21. Either way, look higher towards 10009/12.
FOREX Trading Strategy: Bullish on dips into 9953/64, against 9917, towards at least 10012.
LEVELS: 9891 9923 9945 10009 10044 10071
--- 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.