Taking a look at the dollar index, I noted on April 8th that the index needs to climb above 82 for one to make a strong bullish case. It hasn't done that yet and the chart is messy—as many of them are—with the four doji before the bullish candle yesterday. Yesterday's high, though, was 80.19 which was below that of 80.51 the day before. It's low wasn't quite as low at 80.15 compared to 80.03 Wednesday. The bottom line is that the index must stay above 80.03 which is approximately a .786 retracement of the move from the low March 17 (79.51) to the high on March 25 of 82.18. Ideally, the pair will close above 80.51 today. This messiness will clear up at some point.
© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.
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