Use this intraday chart to trade the Dollar Index
Dave Floyd is a professional FX and stock trader based in Bend, OR and the
President of Aspen Trading Group. Dave’s approach to FX combines technical
and fundamental analysis that results in trades that fall into the swing
trading time frame of several hours to several days. For a free trial to
Dave Floyd’s Daily Forex Alerts
FX Forecast
DXC (dollar index) had a nice sell-off last night but did manage to make a
modest recovery during the London session backs towards Fib resistance at 89.76.
Based on our read of the 60-min chart, this level should contain any further
upward action before leading to another push lower towards 89.30
Below you will find a new feature I will be adding to the column on Monday’s
and Wednesday’s – 24 Hour Target Prices. The brief description below will
provide some guidance on how best to use them, or of course, you can always
integrate them into your own trading style.
If you are looking for a basic approach to using the
24-hour forecasts, we suggest simply placing a trade at the time of the targets
being posted (5AM PDT), taking the profit if the target is achieved, and simply
closing the trade at 5 AM the next morning if the target or stop-loss has not
been achieved.
Stop-losses can be determined in a number of ways, as each trader has their own
parameters and risk tolerances. However, if you are looking for a basic
approach, we would look to set you stop loss at ½ of the pip count that the
target represents. For instance, if the price target for the EUR/USD is 1.2200,
and it is trading at 1.2100 at the time (100 pip gain) of the forecast, we would
suggest setting a 50 pip stop loss (1.2050) and perhaps trailing it higher as
prices move towards the forecast price. “Other traders/clients simply use our
forecast(s) as a guide and then identify their own entry points based on their
trading methodology.
As always, feel free to send me your comments and questions.
Dave Floyd is a professional FX and stock trader based in
Bend, OR and the President of Aspen Trading Group. Dave’s approach to FX
combines technical and fundamental analysis that results in trades that fall
into the swing trading time frame of several hours to several days.