The Dollar Index rallied strongly but expect stubborn resistance between 76.00 and 76.50. Consolidation between 73.00 and 76.50 has continued for more than four months, but we are in a bear trend and downward breakout remains likely. Failure of support at 73.00 would offer a target of 70.00*. Any hint of quantitative easing in the next FOMC announcement, on September 21st, would accelerate the sell-off.
* Target calculation: 73 – ( 76 – 73 ) = 70
The Dollar Index continues to test the band of support at 73.00 to 73.50. The recent failed up-swing (it did not reach 76.00) suggests selling pressure. 63-Day Twiggs Momentum oscillating below zero indicates a strong down-trend. Breakout below 73.00 would offer a medium-term target of 70.00*.
* Target calculation: 73 – ( 76 – 73 ) = 70
The Dollar Index is testing primary support at 73.00. Penetration of the declining long-term trendline is only tentative at this stage and failure of support would warn of a down-swing to 70.00*. Announcement of QE3 by the Fed on Friday would cause a sharp fall, while absence of further easing would strengthen support.
* Target calculation: 73 – ( 76 – 73 ) = 70
