FOREX TRADING

Dollar Index At Resistance

4 Hour Chart Flows: Long Price Points: 75.00-75.40, and 77.00 Looking for: A Short wave ii pull-back towards 75.50

Momentum: The dollar index went into Neutral mode on 26th Oct and has held that trend since. The near-term path of least resistance is consolidation around new lows, with long-bounces on weak equity trading days. The weekly close above 76.00 (a signal that buyers are dominating), is bullish and signals a potential momentum reversal.

Elliott Wave: The dollar index has made a small turning point recently, at the 77.00, where wave i may finally be done. If that is the case then market will trade lower over the next few sessions and days, towards the 75.00-75.40 area with a Short move in a black wave ii pull-back.

Wave ii is a corrective wave, and as such we will be looking for a three wave move, a)-b)-c) pull-back, before an up-trend may continue.

The bearish divergence on the RSI indicator also signals for a near-term short trend.

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