USDOLLAR Inside Day Unfolds Near Trendline Support

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eliottWaves_us_dollar_index_body_usdollar.png, USDOLLAR Inside Day Unfolds Near Trendline Support

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: No change: “Since the USDOLLAR traded through the 2012 high on 2/11, each dip has been quickly retraced. The index began trading in 2011 but we can simulate historical data to get a sense for support/resistance. When we do that, we find the 50% retracement of the decline from the 2009 high to 2011 low at 10560. The next level of interest would be the 61.8% retracement at 10853 which is also the 38.2% retracement of the decline from the 2002 high. The current area is also defined by the upward sloping trendline that extends off of the 2011 and 2012 highs and channel that defines the rally since the 2011 low. In other words, price has entered a zone that probably provides the resistance needed to inspire a countertrend move (down).”

FOREX Trading Strategy: Flat

LEVELS: 10323 10391 10444 10550 10576 10611

--- 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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