Dollar Index Analysis & Forecast, March 6th 2013 (English Language)

Hello traders,

Here below please find attached the video-analysis of the Dollar Index futures for today March 6th:

The Dollar Index could be very close to a reversal. On the daily chart, the sequence of measured moves higher, which was currently trading in extensions long, failed with price moving below 82 (I had indicated that level in the free weekly Newsletter). That failure, along with the traditional long that offered support yesterday and today (see scenario 1 below) is pointing to highs at 82.78-85 or slightly higher.

Dollar Index (DX) futures contract, daily chart - March 6th, 2013

Dollar Index (DX) futures contract, daily chart – March 6th, 2013

Following are the two scenarios I was able to identify. I think the second scenario has less probability to take place:

Scenario 1. After failing the sequence of measured moves higher, with price moving below the 82 level, the Dollar Index found support in the same area. The 81.90 level held indicating a target in the 82.78 level. This is very close to the 82.84 first target of the failed extension long (Busted setup pattern). So I anticipate price moving into the 82.70-90 and then a swift move lower due to profit taking.

Scenario 2. There is still a possibility for price to continue higher, but that would mean that the Euro-Dollar could not find participation at the 1.2900 area.

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Have a good day


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Filed under English language, Euro FX analysis and trade setups videos, Forex, Trading Plan

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