Talking Points
- The US Dollar Breaks Higher on news
- Today’s R4 pivot sits at 12,000
- R3 resistance starts at 11,982
(Created using FXCM’s Marketscope 2.0 charts)
The US dollar has opened aggressively higher, despite a worse than expected Initial Jobless Claims release this morning. Price is currently trading over today’s R4 resistance pivot, found at a price of 12,000. Bullish traders have been looking for a breakout above this value, and a close above this point will represent the 9th close higher in 10 days. In the event that the USD continues to trend higher, Forex traders may begin looking for lower lows on traditional currency pairs such as the EUR/USD.
In the event that today’s US dollar rally falters, traders will begin looking for a reversal below the R3 range pivot found at 11,982. A move to this point would open price up for a further decline to points of support including the S3 pivot at 11,944. A further decline to the S4 pivot at 11,926 would have broader bearish implications. A move to this point would represent the first daily decline in price in 6 trading sessions.
---Written by Walker England, Trading Instructor