Wednesday, July 23, 2008

7/23 - BUY USD ON A PULLBACK (SELL EUR/USD)


After three days being stuck below the 10-day MA at 72.19, the US Dollar Index has raced through to probe the 100-day MA at 72.57. Maintaining platform support at 71.86 hinted at a base, price-action in relation to the 10-day MA is what ultimately shifted momentum. Clearing the 100-day MA, immediately focuses 72.85 (50% retracement), then the 200-day MA (currently at 74.33). We recommend buying the US Dollar on a pullback to the 20-day MA with a stop-loss below the 10-day MA.



Strategy Summary:

BUY USDX AT 72.36 FOR 74.35 (TARGET), STOP AT 72.14….………………….……

SELL EUR/USD AT 1.5810 FOR 1.5666 (TARGET), STOP AT 1.5865


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