Signs of Life From the Dollar
The weakness in the Dollar is far from over, but the better-than-expected ISM numbers gave the Dollar a push above up through the 82.50 level. The 82.80 minor psychological number seem to where the sellers stepped in and kept prices from heading higher.
Keeping a look at the broader chart, the real resistance is waiting at 83.00. It’s also interesting to note that there is a doji candle which is also a minor low (the candles before and after the doji have higher lows and higher highs). This gets my attention as it is typically a sign of a potential reversal. There is also a range in place from the past couple sessions of consolidation.
The 30 minute intraday chart shows the extent of the bounce and to keep it in perspective I have drawn some horizontal levels showing the high/low range of Dec. 3rd and 4th. Notice that both levels were just barely pierced before reversing. There is also a triangle in place that is holding prices in a range. The Wave is heading upwards between 12 and 2 o’clock which means that there is strength on this chart. Be sure to remember though that the daily chart is still very weak as the Wave still plummets downward at between 4 and 6 o’clock.
All charts are
done on eSignal Premium with the EZ2 Trade Software Collection.
www.ez2tradesoftware.com
Raghee Horner is
an trader with more than 15 years’ experience in the markets. Ms. Horner has
taught her brand of technical analysis and charting strategies to students all
over the world. She is also the author of the bestselling “Forex Trading for
Maximum Profit” and “Thirty Days of Forex Trading”. Emphasizing charting and
price action and continues to teach the tools and strategies that encourage
self-directed traders to pursue the study of chart analysis and market
psychology. She is a much sought after public speaker who has conducted seminars
in the US, Canada, the Caribbean, and Asia. For more information on Raghee’s
analysis and trading email cs@raghee.com or
visit www.raghee.com.