Are you ready for a potentially great trade? The dollar index is breaking out of an 8-month trading range. This is happening on some of the strongest economic numbers since 2009. The Fed was requiring stronger economic data – and that arrived on Friday.
The sentiment is that there will be a rate raise at the next Fed meeting. If this is the case the dollar rally is just starting and Hawkeye will show the way.
Dollar Index Monthly Chart
Dollar Index Weekly Chart
Dollar Index Daily Chart
Now this really tells us the story: Good increasing daily volume on a Hawkeye Wide Bar on Friday. As a result, price should retrace back into the Wide Bar in the early part of the week. Then, look for volume to push price up to the Hawkeye Zones area
A potentially great trade is in the making. If 101.45 is breached we should be on our way to a substantial Dollar rally, and a potentially great trade. Overhead resistance has to be taken out, so no maverick trades please. But have this on the radar as a potentially extremely profitable trade is being set up.
And remember, if the dollar goes up look to a short bond trade… yet another potentially great trade.
We demonstrate this and many other methods in our live demonstration room held every Wednesday, and this is open to everyone. Click this link for more information or to join us in class.
[The magenta arrows are for illustration only and do not form part of the software]