Dollar Index 2012-05-14
Here I will demonstrate a us dollar index trade I have just entered. It is a short term trade on 60 minute charts. It is contrary to a fairly strong trend, so the risk is high and I am looking to exit on the first sign of profits. I will be using a very tight stop.
Entry was at 19:03 at 80.845.
What prompted me to make this trade, was that USDX futures have been rising pretty steadily for about three weeks. So I decided to start looking for a shorting opportunity, even if it was just a small correction. In the 60 minute chart, we see prices making higher highs. Then, just where I have made my entry we see MACD failing to reciprocate with the higher highs. This was my signal to enter short.
Because the USDX has been rising so steadily, this is a trade that I really must keep my eye on. Prices could very easily continue their cloud-bound ascent. A protective stop will be especially important for this trade. Again, Although I am looking for an overall top in the US Dollar, I am not sure this is it. I am planning on taking profits quite quickly here, so long as I don't get stopped out.
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