US Dollar Index Tells All PDF Print E-mail
Written by Peter Bain   
Tuesday, 19 August 2008 11:38

Sound familiar? You have spent years surfing the 'Net, and studying books and charts in search of currency trading strategies or forex trading strategies. All you really want is the 'Holy Grail' of entry techniques. You usually end up adding one indicator on top of another, switching from one guru to the next, until you are so confused and unsure of your entry system that you are unable to make entry decisions and stay organized. You get so distracted and frustrated that you quit watching the markets all together!

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U.S. Dollar Index Tells All … October 15/04

Forex traders would be well advised to keep an eye on the U.S. Dollar Index, which is a proxy for the health of the dollar itself. Such information would nicely complement currency trading strategies (a.k.a. forex trading strategies).

If you look at a futures chart of the Index, you will see the continual long-term downtrend. The 85.00 level could provide support, if history repeats itself. That area did stop and reverse a similar downtrend in the late 80s.

Jim Wyckoff sees a choppy and big trading range for the Index in the near future. However, more downside risk would be exposed should the 85.00 zone be breached.

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Last Updated ( Wednesday, 29 October 2008 13:37 )
 

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