USD index to correct lower

[PIA_First_IC]

Technical

USD INDEX- Is the dollar rally overdone?

 

Daily – The daily chart highlights the index stalling and reversing higher close to the 261.8% extension level of 88.19 (from 95.11-92.47). Bullish Outside Day posted from the low. The rally has now stalled and the opposite formation shown (Bearish Outside Day), this often indicates a top is in place

 

Intraday (four-hours) – The move to the upside has fallen short of the 261.8% extension level of 91.32 (from 88.15-89.36). However, 5 waves can be seen to the upside (first wave patterns are normally the most dis-jointed)

 

We now look for a move lower in a choppy manner as we correct towards 89.20-88.80 (61.8% and 78.6% Fibonacci pullback levels) and a possible right shoulder of a bullish reverse Head and Shoulders formation. We then expect buyers to return.

 

 

Summary:

1. In the short term (intraday) we look to sell into USD strength. Prime resistance at 90.50-55
2. Over the medium-term we look to buy dips close to 89.20-88.80

 

 

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[phillo]

[Guest PandaFace]

So you’re supporting a move lower ?

 

What’s a “low volume node” ? What does it mean?

[phillo]

perhaps a zone where fewer transactions took place (low volume) maybe. They often act as support /resistance zones - or price has a habit of "zooming" through them     DYOR