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