Soybeans stay strong

U.S.Dollar Index

The dollar has mounted a bit of a rally over the past few sessions after producing a potential double bottom around the 79.373 area on the chart. Interestingly enough, price has recently rejected the 50% Fibonacci retracement level around 80.070 and has since pulled back off its recent highs. Local momentum remains positive above the 79.650 trough and the recent pullback in price could present bullish traders with a more favorable entry level. An argument for near-term support could be made at 79.865 as well as 79.830 before the 79.650 level becomes relative. There does appear to be a resistance band on the chart from 80.055 – 80.070, which will likely present the most difficulty to any advance in price. Above here, the next significant level of resistance doesn’t come into play until the 80.234 area on the chart. The market has been a bit choppy down at these levels as the dollar looks to build a base from here. Directional bias at these levels remains neutral with local momentum appearing to favor a bullish position.

 

 

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About the Author
Erik Tatje

Erik Tatje is currently a market strategist at RJO Futures and is the author of The Tatje Reporta daily technical correspondence. As a member of the Market Technicians Association, he has distinguished himself as a professional in the field of Technical Analysis and currently holds the Chartered Market Technician (CMT) designation. Erik can be reached atetatje@rjofutures.com or 312.373.5176. Learn more at www.rjofutures.com

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