I am sharing the trading plan for the Dollar Index I have sent last week, on February the 3rd, to my newsletter subscribers. I updated this plan in my Mid-Week Updates and will keep doing so based on what I anticipate in the index going forward using the Program and Algorithmic Trading rules, part of in my Trading Method. Hereunder is the analysis shared on Sunday, February 3rd:
‘The Dollar Index kept moving lower as anticipated. The level of resistance and short setup at the 80.20-30 area brought price into the 79 target area (as projected in last week). So far the 79 level has acted as support, I think only due to profit taking as the the intermediate and long-term direction for the US Dollar point downwards.
I was able to identify the two following scenarios (please, make reference to the below picture):
Scenario 1. Price rallies above the 79.45 level and then finds resistance at the 79.60 area only to resume its move lower into the 79.70 area (1st target) and then the 78.40 area (2nd target).
Scenario 2. Price rallies again into the 79.30 area which already showed strong resistance and meets selling again. This makes price break below the lows at 78.90s generating a continuation into the 78.40s and lower.’
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