I am sharing the trading plan for the Dollar Index I have sent last week, on March 17th, 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:
‘Based on past patterns the Dollar Index would not seem ready for a reversal at this stage. The climbing 20-day SMA could offer initial support for prices at the first test. I anticipate a rally of the Dollar Index in the mid of next week.
As usual I have identified two scenarios (please, refer to the above picture):
Scenario 1. Price bounces off the 20-day SMA (first test) and retraces all the way into the first and second targets, respectively 83.60 and 83.90 of the previous ‘busted’ long setup. The 84 area is previous resistance and could stop the Dollar Index rally.
Scenario 2. After bouncing off the 20-day SMA (first test) price could encounter resistance at the 83 area that could reverse prices and start the move lower for the Dollar Index.’
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