Hello dynamic traders,
As you may already know, some of the major pairs are in a consolidation phase so I though we could look at the Dollar Index to see what is going on.
The Index has been in a decline from the beginning of March this year and demonstrated an almost accurate measured move in the pullback later the same month. After reaching it's previous resistance level it promptly continued it's move to the VI. After breaking that with a flag and continuation to another almost accurate measured move a consoldation has ensued. This consoldation has given us a triangle formation and this morning the last price as you can see from the chart below has broken the lower support level but as you know this could be a fake breakout.
If the Index has indeed broken out and continues the slide down we have support in the 7800 zone and to the upside we have resistance in the 8200 zone.
Watching this Index will help us in analysing the majors.
Chart of daily Dollar Index below is by courtesy of Advanced Get and the data is provided by eSignal.
I would like to congratulate Prakash for last weeks excellent trading. Very well done and you have every reason to be very happy with yourself.
You can follow me on Twitter here.
Good trading...
Anne Chapman
Currency Analyst
