USDOLLAR – Beware a False Break at 10391

DailyFX

240 Minute Bars

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eliottWaves_us_dollar_index_body_usdollar.png, USDOLLAR – Beware a False Break at 10391

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: The USDOLLAR has traded lower but beware of a possible flat correction from the March high. A flat is best described as a sideways correction. What makes it so difficult to deal with is that the end of the correction (in this case down) is sharp, impulsive and breaks support right before a reversal and resumption of the larger trend. In other words, beware of chasing a drop below 10391.

FOREX Trading Strategy: Flat

LEVELS: 10275 10323 10391 10447 10471 10500

--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com

To contact Jamie e-mail jsaettele@dailyfx.com.  Follow me on Twitter for real time updates @JamieSaettele

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