Dollar Index Update: more chop and rising FOMO - not a good combo

Dave Floyd Aspen Trading Group

Content:

Good day traders.

Another back and forth day in FX markets - as the Dollar Index (DXC) and major FX pairs rip lower and higher respectively.

Tempting and frustrating all at the same time. Fear of missing out (FOMO) captures traders’ minds. Not the ideal time to be making critical decisions around your trading capital.

Let's take a breath and simply reiterate what I have been noting for over a week now: FX markets remain in a corrective sideways chop. Grabbing a winning trade in here aligns itself more with luck that your analytical ability....and I mean no offense whatsoever.

On a short-term basis though, a couple of levels are worth noting for those willing to navigate with some nimbleness:

DXC: 94.62-94.53 is possible Fibonacci and trend-line support

USD/CAD: trend-line support at 1.3120'ish. Cycle low due today as well. Simply some factors to consider. Weaker oil will push USD/CAD back up.

Points to consider on chart below:

All moves high/lower from June 21st are corrective, NOT impulsive

Ignore the TRIGGER label - I forgot to remove that, 93.45 is not a level of any significance

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Author

Dave Floyd

Aspen Trading Group

If he lived anywhere but Central Oregon, where the trails of the Cascades mingle with the warm sunshine and fresh air of the high desert, Dave Floyd would probably be one of those guys who lives and breathes trading and analysis 24/7.

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