December US Dollar Futures
Last month’s harsh treatment of our beloved greenback saw the currency giving back over 60% of its gain from the mid September rebound. Currently trading near 93.30 puts the contract in my opinion poised to reach for higher prices. I believe we are in the early stages of the c wave of an a-b-c corrective rally. My overhead extension target comes in at approximately 96.00. This outlook is all contingent on the dollar’s ability to hold above the 93 level. This puts the risk/reward measurement at a favorable 7 to 1. First upside level of contention rest at +/- 94.80. I’d expect a reaction around this point.. We at Walsh Trading are always on the lookout for setups like this. The most important element is ones assessment of risk. In this case ,as mentioned, the breakdown would turn the scenario sour. Please reach out to us to discuss recommended strategies to take advantage of this and other well defined market opportunities.
My analytical breakdown focuses on a blend of wave pattern recognition, long and short term geometrical extensions and momentum signal interpretation.
Please join me next Tuesday as I apply Wave Theory and Geometric targets levels to this and other commodity markets.