Dislikedlook at dixy monthly we did break the trend line where we go from here do we hit 87.50 then retrace then up or we go up all the way to 90.00
i might be wrongIgnored
From http://www.forexpros.com/technical/a...out%2520-25171
The US Dollar Index ended the previous week with hopes of marking a bottom. However, a renwewed improvement in risk appetite on the back of Monday's election results in India caused the Greenback to reject at the10-day MA. Failing at a fast moving average after such a sustained period of weakness and the inability to regain the keenly watched 200-day MA suggested that the dollar was about to enter a period of capitulation.
Wednesday's FOMC minutes which pointed out that the Fed would up the level of quantitative easing added pressure to the DXY (Dollar Index). Thursday's stingy coupon pass spooked the bond market. The subsequent buyback announcement reminded the market of the government's massive debt obligation, causing investors to ponder Uncle Sam's AAA credit rating.
While sentiment towards the dollar remains extremely bearish, several technical indications hint at a possible reversal. First, seasonal factors that usually cause the buck to fall throughout April then recover in early May were delayed and could now materialize to help buoy the currency going into June. Moreover, the adage "sell in May, then go away" could be coming to fruition as the Dow Jones Industrial Average just confirmed a double top formation on Thursday. Although, the normal correlation between risk aversion and dollar strength decoupled this week, this should be a temporary phenomenon and further equity weakness will boost the dollar going forward. Second, virtually every daily study remains at oversold levels and MACD is indicating possibe bullish divergence. Last, according to Elliot Wave analysis, a symmetrical zig-zag correction has been completed.
In capitulation type sell-offs, typically a reversal day (ie a lower low with a bullish close) is required to exhaust the selling climax. If key levels such as 80 and 1.40 hold for the DXY and EUR/USD, respectively, then an inside day followed by an accumulation pattern should fullfill the requirements for building a base. Eventually, the clearance of the 10-day MA is required to stabilize the selling pressure. In the meantime, any counter-rally that is followed by a quick retracement to new lows should serve reason for dollar bulls to be cautious.
Back to basics, it has to be for me!
he likes smelly fingers
