Dollar Index At QE3 Resistance
Sep 26 2012
Despite a strong risk-off reaction seen yesterday during the US hours we will not give up on risk-on views. Reason is on the chart, where at the moment decline on S&P500 cash market cannot be counted impulsive. As such, we think its corrective temporary movement part of a larger uptrend.
S&P500 (cash) 1h
With that said, we are observing few pairs for USD short set-ups. One that we like is USDCAD where recovery is clearly corrective with nice resistance at 0.9840-0.9850.
Structure on dollar Index is also reason why we expect that dollar rally will reverse soon. Recovery cannot be counted impulsive, notice that price is slow and overlapping within a trading channel. That’s clearly personality of a corrective movement and we cannot ignore. Price is now at 79.80 resistance which was high price after QE3 announcement on Sep 13th.
Dollar Index 1h
We will definitely keep a very close eye on USDCAD for possible shorts in the near future. Grega
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