US Dollar Index January 21, 2013, Technical Analysis

The US Dollar Index had a strong showing during the session on Friday, and even managed to break above the 80 handle. While this is in a major area, it does represent the midpoint between 79 and 81 which we used as the boundaries for recent consolidation. If you look at the longer-term charts, there is an upward bias lately, as we are starting to gently trend higher. Because of this, we are comfortable buying this market on a break above the highs from the Friday session as we think a return to 81 is well within grasp. However, if we break down below we would need to see a daily close below the 79 handle in order to start shorting.

 

US Dollar Index January 21, 2013, Technical Analysis
US Dollar Index January 21, 2013, Technical Analysis

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