Dollar Index

Here is the Dollar Index (ICE symbol DX).
This is a long term chart with a major ML drawn and showing one possible path for price to take upwards towards the centre line.

Here below is another Metatrader ML4 chart of the Dollar Index, again long term but this time showing a powerful downward sloping ML. What really turns me on about this chart is that last years 2009 winter low of roughly 74.00 is perfectly shown as a the first touch onto this centre line and then a powerful rebound. How far price will rise we will see in 2010 and if it breaks out of the upper MLP


Below we get up close and personal ( and a bit messy) with a host of ML's drawn BUT one in particular in deep blue seems to interact with price but i am unable to yet decide and am keeping my options open as to possible support and resistance. The main blue ascending ML which had a nice touch and trading opportunity has had the inner quartile lines marked in for the reason that i will be able to see if price truely belongs there(for some time at least) or if it is just passing through! I always check /draw both inner % lines and inner Fib lines and sometimes ( if the program permits) mix them at the same time.



Here's the current action and at the time of writing this (Feb 1st 2010) we are on the upper green MLP. I am watching for a breakout or correction and possible trade.



Yet another ML on DXH and a previous breakout of a downward sloping line that provided resistance for many touches.Notice how the upper red dotted MLP turned from being resistance to support once broken up though convincingly. I am always wary of anything more than a small breach of the upper or lower MLP when price does not break out and the possibility of the ML not describing price as neatly as i would like and while i have no problems with sliding parallels and use them exstensively i avoid trading really messy touches on ML's if in any doubt as to price behavoir.

Personally i favour the Red mod schiff ML in the 4th image down or the almost idential blue Ml in the 3rd image down. Time will tell.