USDOLLAR Drifts Lower; Looking for Higher Low

DailyFX

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eliottWaves_us_dollar_index_body_usdollar.png, USDOLLAR Drifts Lower; Looking for Higher Low

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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-The USDOLLAR made an inside day last Thursday after declining 1.27% last Wednesday. That was the largest one day decline since 6/29/12, which was also 1.27%.

-Possible bottoming levels are the June low at 10469 (low on Wednesday was 10471) and 100% extension of the decline from the July high at 10449. Price has reached the corrective channel support as well.

-The trendline off of the September 2012 and December 2012 lows is at about 10456 on Tuesday. Channel support is closer to the April low (10391) late this week.

Trading Strategy: Rally from the low is impulsive and therefore promising. Exceeding pre-Fed level of 10588 would suggest that a low is in place. An advance of that magnitude would also create overlap with the 9/16 low of 10584.

LEVELS: 10391 10469 10513 | 10584 10627 10642

--- 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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