The Dollar Still Faces Resistance
The U.S. Dollar has certainly not
been dull. Friday brought about a rally to 83.67 that prices are
still trading close to. The correction after the rally touched the 83.20 minor
psychological level and prices are trying to make it up through the “50†pip
once again.
There is plenty of upside resistance as the U.S. Dollar must
tackle. There are no significant hot zones the market will have to deal with.
The Wholesale Inventories number at 10:00am EST could have some impact but
probably not enough to see the Dollar test 84.00. On the 30 minute chart, prices
are trading above the three o’clock Wave which means that there is still some
support but really the Wave is signaling a consolidation.
The daily chart of the Dollar still shows the uphill climb
ahead and why a longer term bullish outlook is not merited, yet. Trends begin
and are first visible on the shorter term charts and “spill over†into the
longer term. The 38.2% Fibonacci is acting as resistance on the daily chart and
this level is further strengthened by its proximity to the 83.50 level. Also
notice that the 84.00 level has the 50% Fibonacci waiting just in front of it at
83.97; again another formidable resistance level.
All this sets up nicely for tomorrow’s 8:30am EST Trade Balance number and then
the big 2:15 FOMC announcement. I expect more consolidation on the 30 minute
chart in front of both these hot zones.
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.
