Hello all,
I though this could be of interest. Following is my view on the Dollar Index on the 4-hour chart.
http://www.forexfactory.com/attachme...1&d=1359378811
On Dec 20th, we had the start of that move higher I call the Fiscal Cliff rally. Eventually it came to an end. Price moved lower and then bounce again during the last two weeks.
I think bears are back in control in the Dollar Index. But this has a strange taste as we area seeing the minor pairs (USDJPY, USDGBP and USDCAD) showing weakness to the dollar. While EUR/USD has been consolidating on top of the 1.3250-70 area for almost 2 weeks, DX had a bullish bias, due to the contribution of minor pairs, but its price was contained by resistance at the 80.20-30 area.
The resistance at 80.20 is also a short setup with a target in the 79s. To be able to believe in a move to previous lows in the 79.10 area I need to see price trading below the 79.70 level. Notice that the 79.70-90 area has been providing support for the last 4 days.
On the other hand, should price move again above the 80.05 level a new retest of the 80.30 area could be possible. This could probably mean the 1.3300 area retested by EUR/USD.
Price will tell. Trade safe.
Cheers
I though this could be of interest. Following is my view on the Dollar Index on the 4-hour chart.
http://www.forexfactory.com/attachme...1&d=1359378811
On Dec 20th, we had the start of that move higher I call the Fiscal Cliff rally. Eventually it came to an end. Price moved lower and then bounce again during the last two weeks.
I think bears are back in control in the Dollar Index. But this has a strange taste as we area seeing the minor pairs (USDJPY, USDGBP and USDCAD) showing weakness to the dollar. While EUR/USD has been consolidating on top of the 1.3250-70 area for almost 2 weeks, DX had a bullish bias, due to the contribution of minor pairs, but its price was contained by resistance at the 80.20-30 area.
The resistance at 80.20 is also a short setup with a target in the 79s. To be able to believe in a move to previous lows in the 79.10 area I need to see price trading below the 79.70 level. Notice that the 79.70-90 area has been providing support for the last 4 days.
On the other hand, should price move again above the 80.05 level a new retest of the 80.30 area could be possible. This could probably mean the 1.3300 area retested by EUR/USD.
Price will tell. Trade safe.
Cheers
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