US Dollar Index Stuck On 76.4% Support

02 September 2011

WEEKLY CHART

Earlier support came from the bear channel base projection, following the brief breach of the 74.170 Nov-09 low.

DAILY CHART

See how the Jul pullback has stuck at 76.4% support, fortified by the 73.506 07-Jun low. A clear positive reaction is needed to reduce bear risk.

In this respect a better break of the 38.2% recovery area is needed for the first bull signal, when higher targets can be considered.

There comes a point when reluctance to drop below the 76.4% level becomes reluctance to recover -we are probably not far off that turning point.