Dollar Index has reached the 161 fib extension of the
major ABCD that started in Aug 2011. It is also just shy
of a Butterfly Sell, that has its D point at 11 400. These
two levels, the price reversal zone, will likely have some
impact on further development. If looking at pairs such as
UsdCad and AudUsd they have made a significant breakout
on Monthly timeframe, but just with some small margin. IF
Dollar Index is ready to pause here, the monthly breakouts
may become fake breakouts. Until Dollar Index has cleared
11 400 with conviction, I would use caution taking any Usd
based breakouts on higher timeframe.Both monthly and Weekly
fimeframe, when looking at close price in relaiton to Pivots,
suggest further gains (both have closed above R1). If Index
break out higher it will likely be a dramatic move, since ABCD
and Butterflys tend to fail with sharp price action.
major ABCD that started in Aug 2011. It is also just shy
of a Butterfly Sell, that has its D point at 11 400. These
two levels, the price reversal zone, will likely have some
impact on further development. If looking at pairs such as
UsdCad and AudUsd they have made a significant breakout
on Monthly timeframe, but just with some small margin. IF
Dollar Index is ready to pause here, the monthly breakouts
may become fake breakouts. Until Dollar Index has cleared
11 400 with conviction, I would use caution taking any Usd
based breakouts on higher timeframe.Both monthly and Weekly
fimeframe, when looking at close price in relaiton to Pivots,
suggest further gains (both have closed above R1). If Index
break out higher it will likely be a dramatic move, since ABCD
and Butterflys tend to fail with sharp price action.