Dollar Index - Daily Chart Analysis

[ddukic]

Dollar Index 26/09/2012 - Daily Chart Analysis

 

http://fxlisting.net/images/dxD-26092012.jpg

 

COMMENTS: Today 26 September 2012, I also post on FXListing.net the corresponding daily chart for the Dollar Index. The price of the Dollar Index returned above the 0.50 grade of the Fibo Retr scale and re-entered in the D1-D2 red channel. Obviously this correction since the low of 78,71 points corresponds to the same correction you may observe in the daily chart of the EUR/USD pair. Naturally, the EUR/USD pair is among the main components of the Dollar Index.

SUGGESTIONS: For as long as the Dollar Index price remains above the 0.50 Fibo grade, you stay “short” on all currencies composing the Dollar Index, against the USD. Vice versa, in case the price crosses from above the 0.50 Fibo grade and for as long as it stays below, you keep “long” positions on all currencies participating in the DX against the USD.

[ddukic]

Dollar Index 28/09/2012 - Daily Chart Analysis

 

http://fxlisting.net/images/dxD-28092012.jpg

 

DOLLAR INDEX – DAILY CHART

 

COMMENTS: Today, in order to follow closer the EUR/USD parity, I post in addition to the two EUR/USD charts already posted earlier, the daily chart of the DOLLAR INDEX. The predominant elements of this daily chart are the two Fibo Retracement scales marked with red and blue arrows. Please observe the latest swing of the Dollar Index’s price on the blue Fibo Retracement scale. Do you remember you first approach to Fibo, when books of technical analysis and related videos were talking to you about the various grades? Well? Was the 0.50 grade of the blue Retracement Fibo scale able to reverse the course of the price?. Of course it was. A few days later, was the 0.38 grade of this same Fibo scale to re-reverse the course? Of course it was. What is next? Only God knows. We, humans unable to read the future, we can only try to guess. The best option is to limit the chances to 50/50 or as it is called in the roulette, red or black. In FOREX it is called, up or down.

SUGGESTIONS: The question is: Did the correction from the level of 78,85 points exhausted its course, or, yesterday’s negative trading day constitutes a simple pull back and the price few days later will continue its corrective course? The reply will tell us whether to be long or short on the currencies included in this Index against the USD. The correction running from the level of 78,85 points, most probably, motivated some of you to open short positions on the individual currencies against the USD. Indeed, all corrective days were within the limits of the small channel created since the 78,85 level. This is how a trend is built. The corrective days do not exceed previous lows. So, stay on your short positions against the individual currencies waiting further developments. Obviously, whenever the Dollar Index crosses from above the level of 79.53 points (0.50 grade of the red Fibo scale), either you minimize your existing exposure, or, you close the short positions mentioned above. At this point, when the DX crosses from above the 79,53 level start thinking about long positions on the individual currencies composing this Index. If there are CFD Brokers offering CFD’s trading on the Dollar Index, you trade in the contrary of the suggestions given until now.

[ddukic]

Dollar Index 02/10/2012 - Review and Analysis

 

http://fxlisting.net/images/dxD-02102012.jpg

 

USD INDEX

 

COMMENTS: Unfortunately I cannot present a 4 hours chart for the USD Index too, in order to have a uniformity of time frame on all instruments and pairs we analyze. Anyway, let us be satisfied with the Daily chart. Day by day we proceed for the D2 upper trend line of the red channel D1-D2. As you can observe, the lows of most days are higher than the previous day/s thus creating a cautious but steady diagonally up move. In my opinion, the 200SMA will constitute one of the targets this correction would like to reach as it evolves. In the meantime, is possible for the 50SMA to be around there at the same tine creating in conjunction with the 200SMA a strong level that is expected to act as resistance.

 

SUGGESTIONS: When the price of the USD Index increases, the currencies included in it lose against the USD. If my forecast about the price going up to the forthcoming crossing of the two SMAs, you should keep your short positions on the currencies against the USD. Obviously, for all friends trading with CFD Brokers who offer CFD trading on the USD Index, you must keep your existing long positions opened until the forecasted crossing. For long positions on the currencies constituting the Index, or, short positions on the Index itself we will be talking after the Index’s price reaches the 200SMA. Anyway, today’s trading will give us a better sign for our forecasts.