US Dollar Index Poised For Recovery?
08 July 2011
WEEKLY CHART
Note how support has come from the bear channel base projection, following the brief breach of the 74.170 Nov-09 low.
The start of the recovery was marked by a key reversal weekin early May, which provided an initial bull sign.
Further recovery could find resistance from the rising return line.
DAILY CHART
The Index remains below the 38.2% recovery level, with the early May key reversal week still providing a positive backdrop. A clear break of this would provide the first bull signal.
Note that key resistance lies higher, at the channel top at 78.400 -a more lasting recovery phase would be likely if this was clearly breached.
Meanwhile s/term support comes from the 76.4% pullback at 73.560.
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