USDOLLAR Lower; Big Trendline and Channel Not Far Below

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eliottWaves_us_dollar_index_body_usdollar.png, USDOLLAR Lower; Big Trendline and Channel Not Far Below

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

-Since the 2011 low, USDOLLAR has not dropped for more than 4 consecutive weeks. Last week was the 4th consecutive weekly decline.

- The decline after the Fed announced ‘no taper’ feels like the QE3 announcement in September 2012. In both instances, price formed an inside week the next week. Both declines formed channels, albeit in different ways.

-The decline from the July high would consist of 2 equal waves at 10449.

Channel support is at about 10400 and in line with the March and April lows this week. The 52 week average is between trendline and channel supports.

Trading Strategy: Flat

LEVELS: 10325 10394 10469 | 10582 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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