Dollar Index: Key Level Here And Now
From Nic Lenoir of ICAP
Just a brief intraday update on the USD. We have potential H&S formation in EURUSD, AUDUSD, and inverse H&S in DXY. Furthermore we are very close to the 61.8% retracement from the highs in AUDUSD at 99.26, and while in EURUSD the level is 1.4035, we have resistance around the highs of 10/0 and 10/10 between 1.4010 and 1.4031. Overall the USD if it must find support should ind it around here. AUDUSD chart shows massive saturation on the slow stochastic and the RSI is at levels where the market corrected both in May and October 2009.
If anyone wants to take a stab at buying the USD here is probably a good time to do it, and relatively tight stops can be used.
Good luck trading,
And here is a chart from CreditTrader showing that we may be ending the recent period of weakness based on technicals. Then again technicals do work best away from centrally planned markets.