Taking a look at the daily USD index, you can see it's in an uptrend for the year. It's also been in an uptrend since the April 1 low of 80.68. The chart below is a little difficult to read with all the Gann angles but the bottom line is that the index needs to climb above 82 to then have a shot at 83 and possibly higher. 82 is a polarity area. As to the Gann followers, they've been calling for the decline of the index for months. Despite their passionate beliefs, you can't trade on Gann angles alone.
Here's the chart:
© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.
My purpose in writing this blog is to show you how one trader, me, makes trading decisions and survives while trading Forex. One of the biggest problems I had when I first started trading was trying to apply the “rules” to actual trades. Another was the psychology—limiting losses and letting profits run. If you study my blog, you’ll see how I deal with both those issues. So my writings are not trade recommendations but rather educational in purpose. You have to decide on your own approach to trading. Remember that trading is risky.