Thursday, July 24, 2008

7/24 - ADJUST BUY USD (SELL EUR/USD) ENTRIES


The US Dollar Index surged through 10-day MA resistance on Tuesday, extending yesterday through the 100-day MA to currently probe 72.85 (50% retracement level). Last week’s capitulation completed a five wave structure and has since put in an A-B-C correction. While above 72.40 (also where 20-MA currently sits) suggests an impulsive wave structure that could ultimately test the 200-day MA (currently at 74.30). While short-term studies remain overbought, we recommend buying the US Dollar on dips, with a stop-loss below the 20-day MA.


Strategy Summary: BUY USDX AT 72.56 FOR 74.35 (TARGET), STOP AT 72.34….………………….…….……………

SELL EUR/USD AT 1.5740 FOR 1.5580 (TARGET), STOP AT 1.5785…

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