Wednesday, October 26, 2011

DXY - Goal Post Breakout Coming?

Dollar index is in goal post area on daily. This morning it bounced off 200 dsma and now (as I type) it is just under 50 dsma. This goal post area is going to break. My plan is to trade the breakout above 50 dsma. I think that EUR/USD has to breakdown below 1.3830 for this to occur. EUR/USD is trying to do that as I type. Be ready...

Good luck with your trading!

Update Oct 26 @ 2:05 pm
DXY 50 dsma resistance is holding. EUR/USD is jumping on rumor that Giant Panda is coming to the rescue of Europe. Very interesting, are they going to have money left for their own bailout? It is coming still... Nonetheless, do not argue with price. Wait for daily close above 50 dsma.
I wrote a piece about why Euro has not collapsed. No need to get into a pissing match with Giant Panda, which has been there all the way

Update Oct 27 @ 10:55 am
Well, DXY broke the goal posts, but on the downside. This is a very bearish development if it continues to consolidate below 200 dsma. If it can quickly turn around and get above 200 dsma, then perhaps it can muster enough bulls for a fight. But with such a huge risk-on environment today, hard to imagine it can do that.

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