Cycling in the US Dollar

Wanted to revisit the dollar, as we are now about 25 trading days from the last swing high.  In those 25 days, we’ve seen the USD move from 83.63 to a low (so far) of 79.39, with the bulk of that move coming in the last 13 days.

Is it time for a rebound, at least in the short-term?  I’m thinking “yes”, as the cycle seems ready for a pause higher in order to rebuild energy to the downside.

Notice, too, how we are very near the S2 target for this month, and a nice upward pause would hit a pivot point “ceiling” next month of around 80.78.

Gold and equities would then be expected to have the opposite reaction, with a pause in their recent upward moves, only to resume higher in early to mid October.

We’ll see, but these are the pivots I’m watching in the coming days as a possible scenario.

Have a good day and trade the extremes!


About thefront9

Independent trader with a flexible approach to the markets. Position trading, swing trading and day trading using Futures, Equities and Options. This site is intended to help others (and myself) see what I see and to stay true to the discipline of making trades at the extremes. Contrarian and TastyTrade addict! Living in Texas with my family, helping others and maybe playing some golf from time to time makes life busy and great. Add a little music and humor and that just about sums it up. Trade the extremes and manage risk.....always!
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