• The USDollar attempts its first breakout in eight sessions
• Daily S4 support is found at a price of 12,070
• reversals for the USDollar begin today at 12.077
The USDollar is opening this mornings trading with a counter trend reversal. Prices for the Index are already trading beneath todays S4 which is found at a price of 12,070. A breakout today is significant, as it represents the first attempted breakout for the USDollar in the last eight trading days. If prices continue to move towards lower lows, traders may see today’s move as an attempt for a broader reversal for the Index. It should also be noted that a USDollar , can be taken as a signal for traditional US Dollar based currency pairs such as the EUR/USD and GBP/USD . traders watching these graphs can watch for breakouts above values of resistance in the event the USDollar continues to weaken.
In the event that prices fail to continue moving towards lower lows, traders on the USDollar will look for prices to move back inside of today’s denoted trading range. Range support begins at the S3 found at 12,077. A reversal to this point, opens the Index to test values of resistance including the R3 at a price of 12,093. In this alternative scenario, breakout traders should consider concluding any existing positions based off of the changes in market conditions.