During the volatile trading on Friday morning, the U.S. Dollar Index futures bounced off of an important midpoint pivot whose ‘D’ sibling is down below at 80.100. The pattern is robust, with an impulse wave that took out major external prior lows, as shown on the attached chart. Friday’s low was two ticks (one cent) below the midpoint of 80.970, and the bounce thus far looks weak. To buy the ‘D’ target would be to front-run the 80 level, but in these days of stop-hunting algorithms and false breakouts, we should be wary of the magnetism of that round number. (Posted by Doug “harry” McLagan)
