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#425 (permalink)

09-07-2008, 07:49 PM

Ilya Spivak Ilya Spivak is offline

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Current positioning may point to a retracement of recent USD strength which will be treated as an opportunity to add to shorts or enter new sell positions with better risk-reward parameters. Looking at the US Dollar Index, we see a fledgling Bearish Engulfing formation squarely below the 38.2% Fibonacci retracement of the 11/2005 - 03/2008 decline. We will look for a close on the current candle to confirm the Engulfing, but initial positioning points to a near-term reversal across the major pairs (EURUSD included).

Ilya

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Ilya Spivak writes the Candlestick Weekly and Euro Open on DailyFX.com

Last edited by Ilya Spivak; 09-07-2008 at 08:06 PM..

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