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.
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):
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.