Thursday, July 3, 2014

US Dollar Index stages a 4-week falling channel breakout to signal basing

US Dollar Index (DXY) rebounded sharply higher off Tuesday’s 79.740 low (near 61.8% of the 78.906/81.020 rise) through a series of daily lower highs to signal basing and test the 80.261 (200 day MA), 80.335 (20 day MA) and 80.379 (26 Jun lower high) resistance area. Improving indicators suggest there is scope for further strength through the resistance zone towards 80.494.
On the downside, below 79.952/79.937 would prolong consolidation and reopen 79.740. A push below the latter would extend the slide off 81.020 towards 79.421.

 DXY 240minute chart


 DXY daily chart


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