Monday, October 18, 2010

USD Index--Monthly

When I ran the monthly chart this past Saturday, the index had just about touched its monthly uptrend line. One should see a bounce from the touch and given the behavior of some of the dollar pairs I think it's more likely than not.

There's still all that negative dollar sentiment and the Fed is sure to continue its less than effective quantitative easing. Have you ever seen a market bounce in those doomsday conditions? I have. Stay tuned. If the index begins to approach 78, there may in fact be a decent rally, at least up to the top of the symmetrical triangle.

Here's the monthly 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.

No comments:

Post a Comment