The USD rally continued overnight but there are some significant road blocks ahead that could give the index a bit of a pause. 88.50 is just above current price and was the region of highs last seen in June 2010. Above that is 89.50 which is the region of highs not seen since March 2009. NB: I have rounded these high values to near the most obvious fraction.
USDX monthly: price is approaching region of 2010 highs:
USDX weekly:
USDX daily:
USDX 4hr:
Market analysts will be keenly watching to see how the USDX reacts to tonight’s NFP whilst price nears this key resistance level. The ‘long USD’ trade has been the obvious one until now, especially with the recent bullish triangle breakout, BUT with resistance and NFP looming I’d be careful with any long USD positions.
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