The election day dollar
On the Monday the 6th (yesterday) the 30 minute chart of the U.S. Dollar Index showed a relatively strong market that was losing some momentum but still poised to strike at the 86.00 resistance level.
With the support of the Wave and minor psychological number of 85.80, the market was still bullish.
The short term intraday view quickly changed at Noon EST on Monday as prices pierced the three lines of the Wave. The break through Wave support and the “80” tick level headed lower through the rest of the U.S. session and accelerated into the Asian session. There were no shortage of support levels between the breakdown and 85.00.
The end of day Dollar shows that the weakness was nothing more than a retracement of an established downtrend. The shift to the downside began on Oct. 26th as prices traded down through the Wave and subsequent attempts to trade higher have been met with Wave line resistance on Oct. 31st, Nov. 3rd, and the 6th.
As long as prices are below the Wave they are on the “weak side” and further weakness is expected. Watch the 85.00 level because this will show whether buyers are willing to support this key support.
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.