eliottWaves_us_dollar_index_body_usdollar.png, USDOLLAR Impulsive Decline; Resistance at 10865/75

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: Wrote Monday that “the USDOLLAR spiked through the 61.8% retracement of the decline from 11009 before reversing. The Monday high is also reinforced by the 7/9 low. Bigger picture, our goal should be to buy dips and the latest decline did retrace almost half of the rally from 10469. The reversal today however keeps me open to additional downside…maybe into 10675.” Very near term, weakness from Monday’s high is best described as impulsive (like USDJPY). The implications are for a partial recovery of the decline before price is under pressure once more. 10865/75 is probably the strongest zone of resistance.

FOREX Trading Strategy: Flat

LEVELS: 10585 10675 10770 10848 10876 10951

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

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

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