BarroMetrics Views: The US$ 2010-01-21 (II)
Today, I am looking at the DX (US$ Index) from the technical perspective.
Figure 1 is a Monthly chart (Nearest Futures Month) of the DX (US$ Index). My preferred view is the DX is in process of completing either:
- A 4-wave continuation triangle or
- A 5-wave change in trend triangle.
If (1) is correct then Figure 2 shows there are three ideal zone terminations:
- 80.16 to 80.46
- 81.71 to 82.62
- 83.53 to 83.88
Figure 2 also shows that we are at a potential failure zone. The 290-Minute chart in Figure 3 shows the strong momentum up (shaded rectangle). Note that the price action for Jan 21 shows a neutral bar at a sell zone (Figure 4). Normally I would be looking to sell the DX given the potential Negative Development sell pattern. But given the strong momentum, I rate the possible failure at these levels as a low probability event.
FIGURE 1 DX Monthly
FIGURE 2 DX Weekly
FIGURE 3 DX 290-Minute
FIGURE 4 DX Daily
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