US Dollar Index Forecast August 15, 2012, Technical Analysis

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The US Dollar Index had a fairly flat session on Tuesday, but did manage to form a hammer. This suggests that perhaps we will see some Dollar strength over the next couple of sessions, and it also happens to have formed on the uptrend line of the channel that has been holding everything together for the last couple of months.

With this being said, it does look like the “risk off trade” could come back into play. Remember that the Euro is 40% of the US Dollar Index, so it makes sense that the overall strength of the index should remain intact. Until the situation in Europe get cleaned up, overall this market should be strong. As a result, we are willing to buy on a break of the Tuesday highs. As for selling, we won’t do it until we break below the 81.50 level.

US Dollar Index Forecast August 15, 2012, Technical Analysis

US Dollar Index Forecast August 15, 2012, Technical Analysis

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About:FX Empire Analyst - Christopher Lewis

Christopher is a part of the FXEmpire.com analysis team. He writes Forex and Commodities technical analyses on daily and weekly basis. Christopher writes his analyses in a professional and yet simple to understand manner. His analyses are available in both text and videos.

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