Down Drops the Dollar on Divergences into Fibonacci Target

Dec 5, 2016: 3:38 PM CST

The S&P 500 isn’t the only market you can track using intraday charts and Fibonacci Levels.

Let’s carry forward the same logic to the intraday @DX US Dollar Index and plan the next swing from here.

We see the US Dollar Index on the 30-min chart on a rally from 97.00 to 102.00.

Note the progression of strong, rising price highs with confirming new momentum highs early in November.

As price continues its uptrend, we see progressively lower highs in our momentum oscillator, locking in a negative momentum divergence.

We’ve been cautious on the Dollar into the 102 index level as described in our Weekly Member Reports and we’re now seeing the expected (and logical) sell swing down away from the 102 level toward the 100 confluence target.

Note that 100 is both a “Round Number” and a Fibonacci (38.2%) Retracement Target which is now achieved.

Use the 100 level as your pivot price for bullish plays above and bearish “additional selling” trades beneath it.

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Corey Rosenbloom, CMT

Afraid to Trade.com

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5 Comments

5 Responses to “Down Drops the Dollar on Divergences into Fibonacci Target”

  1. Intelligent Trend Follower Says:

    Thanks for the update on the dollar Corey. It’s sure moved like crazy recently. Also appreciate seeing your fibonnaci analysis applied to other assets (enjoy when you do stocks too). Thanks again!

  2. Tracking the Dollar Using Intraday Charts - TradingGods.net Says:

    […] By Corey Rosenbloom […]

  3. US Dollar Index Bounces from Our Fibonacci Target | Afraid to Trade.com Blog Says:

    […] US Dollar Index Bounces from Our Fibonacci Target Dec 8, 2016: 12:05 PM CST The US Dollar Index caught a strong bullish bid this morning, surging up away from our known Fibonacci Confluence target. […]

  4. US Dollar Index Bounces from Our Fibonacci Target - TradingGods.net Says:

    […] December 9, 2016 by Dan, The Trading God Leave a Comment The US Dollar Index caught a strong bullish bid this morning, surging up away from our known Fibonacci Confluence target. […]

  5. Suntaz Says:

    I love trading through Fibonacci levels, but it’s obviously something that we need to be very wise with, if we go wrong or don’t get the fake breakouts then it could create issues. This is why I always trade with strict money management, as it helps me working out things nicely and thanks to OctaFX broker, I am able to get 50% bonus on deposit which works nicely and even they have allowed use to operate with as low as 0.01 lot size, so we can always test out waters!