Where Will the Dollar Go from Here?
The U.S. Dollar has broken one support level after another as it sliced down through 85.00 and 84.00 and has found near term support arund the 83.50 area. The U.S. Dollar is adheres especially to “00” and “50” tick levels. The 83.32 low has been in place since the 26th and the current consolidation is as much a reflection of how far and fast the Dollar has fell as it is the impending economic data that is going to be released this morning. These “hot zones” as I call them will certainly test the Dollar current consolidation.
Prices have broken significant support on the weekly chart as well. Although prices are not much past the 83.60 low of earlier this year, the next level to the downside is the 83.30 area.
It’s always tempting to try and go for the glory…and try to pick the bottom of a sell-off. Bad idea. Look to the 83.30 and then the 83.00 for support. There is plenty of resistance to contend with but the main one to keep an eye on is the Wave.
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.