The US Dollar Index rejected at a key midpoint and the 20-day moving average last week, underpinning an initial move back to the 10-day moving average. After being compressed between the two moving averages for several days, support was lost, leading to the latest capitulation. Previous moves have shown symmetry in regards to their length (2.5 points). If this holds, then a move to 70.50 is projected, marginally below the all-time low. We recommend shorting the US Dollar Index at the 10-day moving average with a tight stop above the 20-day moving average.
Strategy Summary: MISSED SELL USDX , SELL AT 72.25 FOR 70.50, STOP AT 72.65
MISSED BUY EUR/USD, BUY AT 1.5845 FOR 1.6148 (TARGET), STOP AT 1.5805
No comments:
Post a Comment