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USD Index − Two possibilities at the current pivot point

Sun, Jun 14 2009, 23:28 GMT
by Pierre Charlebois

Trading Metro


Staying focused on the USD index as it is the proxy for virtually all other currency pairs we can see that there are two very distinct scenarios playing out. I have posted two potential counts and am not bias either way as I believe both are equally possible at this time.

And in fact, counts could require updating as the move up is still not clearly a reversal and may still be some sort of correction before a return to new lows.

What I do believe is that if the alternate count is played out that the downside will eventually give way to an overall turn that will last for several weeks.

The Dollar is oversold and as we go deeper into this territory the potential for a larger reversal increases.

So be patient and look for opportunities that are clear.

Key levels to watch this week are 81.50 and 78.32

Cheers and good trading.

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index


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