USDX: down but not out! by Mary McNamara

The USDX has pulled back down from the resistance of the monthly chart’s triangle bear trend line but it is still holding above a shorter term, daily support trend line for the time being.

USDX daily:

USDXdaily

Any new close and hold below this daily support trend line would have me looking to various fib levels as potential bearish targets: the 50% fib near 83 and the 61.8% fib near 82.50 stand out. The 61.8% fib is also just above the previous trading channel trend line of 81.50. This channel kept price bound for almost 11 months and, thus, is a strong region of S/R. I have been saying for last few weeks that I would expect a pull back here and to possibly the 81.50 level at least:

USDX weekly: showing the recent 11 month trading channel (81.50 – 79):

USDXweekly

Summary: I’m not expecting too much activity until after FOMC but traders should watch the daily support trend line for clues as to the next move with the USD.

NB: Admiral Markets no longer offer FX Indices on MT4 and so I have had to source these charts from another provider.

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