Friday, November 13, 2009

USD Index (NYBOT:DX) - Double bottom? (part 2)

Two days ago the brief breach below 75 level resembled a breakout attempt. I've expressed an opinion that we might actually have a Short-Term Double Bottom pattern forming in progress.

Seems it is not that easy to have a sustained breakout and to my observations lately we more often witness violent whipsaws following the fake breaks. No need to mention the Pound Sterling as one of the most violent ones.

Anyway, I am kinda happy and intellectually satisfied by realizing the potential reversal. I continue to monitor the developments as the USD down trend has been quite orderly maintained since June however with the Volatility being really low in the mast few months it is highly possible that we could see some bigger moves in the very near future following the Double Bottom bounce.

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