Down Drops the Dollar on Divergences into Fibonacci Target

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

  1. 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!

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