Tanalys

USDOLLAR New High Would Probably be Short Lived

Daily Bars

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: The USDOLLAR broke higher from the ’death corner’, suggesting a run towards the highs in a 5th wave (the ‘death corner’ is the apex of several trendlines…it’s where trades go to die). 10323/65 is still support if we break lower but the low but the hold at Elliott channel support argues for a new highs in order to complete 5 waves up from the September low.

FOREX Trading Strategy: Even with the break higher, I’m not comfortable with the long side given the EURUSD and GBPUSD reversals and 5th wave interpretation of the current rally.

LEVELS: 10323 10391 10451 10576 10608 10710

— Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com

To contact Jamie e-mail jsaettele@dailyfx.com.  Follow me on Twitter for real time updates @JamieSaettele

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