USDX—Monthly

As I suspected, the USDX is holding above its uptrend line on the monthly chart, bouncing from its low this month of 7614 before rallying. Its low so far today is 7720. While there may be another retest of the 7614 area, possibly even somewhat lower, one can view this as the bottom of a deep correction and reasonably expect a rally. This would imply that dollar pairs (EUR/USD, GBP/USD) will decline over the next week or so. However, the dollar must get cleanly above 78.50 for this to happen.

Here’s the monthly chart:





















© 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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