Tracking the Dollar Using Intraday Charts
The S&P 500 (NYSEARCA:SPY) 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 (NYSEARCA:UUP) 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.
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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.