US Dollar Index Chartly Pick

• alaidi
• September 30th, 2010

$USDX looking for 76.00, which is the 18-month trend line support on the 6-currency basket as $EURUSD extends rebound past $1.36. A break below 76 on the $USDX suggests protracted declines towards the 74 low (Nov 2009). 3 weeks ago I said $EURUSD needed to break ABOVE its 200-day MA after the $USDX broke BELOW its own 200-day MA. Well, now we need the same thing on the WEEKLY basis. The chart here shows $USDX broke BELOW its 200-WEEK MA last week, thus, we need for $EURUSD to break ABOVE its own 200-WEEK MA, currently at $1.3894, which coincides with the 61.8% retracement of the decline from the $1.5151 high (Nov 2009) to the $1.1876 low (June 2010). Thus, $1.38 appears as a conservative target for the next $EURUSD advance.

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Tickers: $DX_F, $EURUSD, $USD, $USDX, chartly

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