Medium term
Trade view / 06 November 2015 at 15:09 GMT

Dollar Index breaks free for 100-plus charge

Managing Partner / Spotlight Group
United Kingdom
Instrument: USDINDEXDEC15
Price target:
Market price:
Background


“…However, as one can see from the chart above since July the Dollar Index has had a problem moving above 98.00. I will continue to play currency pairs whilst refraining from going long of the Dollar Index until it breaks higher than the 98 level. …”

The break above 98.00 was seen on November 4 and as I suggested in the report listed above I have gone long. The upside has been probed this afternoon as the US economy added 271,000 new jobs in October versus 180,000 expected and up from 237,000 the previous month, according to the nonfarm payrolls report.

Meanwhile, the unemployment rate dropped to 5.0% versus 5.1% expected. Average Hourly Earnings also came in strong at 0.4% from a flat reading in September.

Following a strong employment reading, expectations of a Fed rate hike in December increased considerably. Earlier this week, Fed Chair Janet Yellen had said December was a live meeting and the decision would depend on data.
Dollar Index
Source: www.investing.com, Spotlight Ideas

I am on record with Saxo TV as being a dollar bull.

Dollar Index
Source: www.investing.com

Management and risk:

Parameters: US Dollar Index Dec 15 DXZ5

Entry: “Wait for break over 98.00” Activated on November 4

Targets: 99.55 … 99.95 … 101.36 … 102.30

Protection: 99.00

Time horizon:  Medium-Term (2 Months)


— Edited by Martin O'Rourke

Non-independent investment research disclaimer applies. Read more
4y
vanita vanita
Dear Steve,
I agree uhh told before abt usdindex.
Once again great presence of mind with rgt views uhh rockssss Steve.
Take care.

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