Monday, August 17, 2009

Dollar Index Follow-up

Back on August 10 we highlighted the weekly chart of the September Ice Dollar Index contract pointing to a weekly bar reversal and that it hat basically retraces to a key .618 Fibonacci retracement level.


Today we follow up with daily charts of the September Dollar Index. We want to show that after making the low on August 5 at 7752 the price rallied to 7951.5 prior to its minor setback to 7830.5. Coincidentally, the .618 Fibonacci retracement of that upward move (7752 to 7830.5) was ~7828. Once again this .618 ratio came in to play.


After holding the 7830.5 low the high after only 2 days has been 7969.5. There is some resistance near this level as the 50 day moving average we show this morning as ~7982 and there is a .750 Fibonacci extension target at ~7979.



We believe that over the coming days and weeks that there is additional upside potential as this pattern unfolds. Even though this is our outlook we are not making a recommendation to buy or sell any futures, option, security or any derivative here. We will be happy to discuss any questions or comments you may have about this situation.


jmajer@mfglobal.com

313 261-7380
800 321-5810


Futures and options trading contain substantial risk of loss and may not be suitable for all investors.

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