- The USDX has found temporary support at the 50% retrace of the last swing higher as can be seen on the attached dollar-x weekly period chart.
- The 78.50 area has the following confluence elements: previous price action structure support level, 50% retrace and 100 period moving average (weekly timeframe). A sustained break below this area would be a constructive development.
- A break below the current 78.40 support level exposes the 61.8% Fibonacci retrace level around 77.00.
- Price is currently trading higher on the weekly basis but has printed red (bearish) weekly candles for the last 4 consecutive weeks.
- Any upside could potentially find resistance around the 80.00 round number area. Further to this the 81.30 area is a PPZ (price pivot zone) and could likewise – once again – possibly see resistance if hit.
- Price action on the heavily USDX weighted EURUSD currency pair should be monitored around the key 1.3000 level; this could give a hint as to the near tern USDX directional bias.
Published in: Dollar Index Technical Update
Dollar Index Technical Update 19/9/2012
Wed, Sep 19 2012, 21:38 GMT