US Dollar Index Forecast October 23, 2012, Technical Analysis

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By FX Empire Analyst - Christopher Lewis
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The US Dollar Index had a fairly strong session on Monday as the market crossed over the 79.50 level again. However, this market does look like it's currently consolidating between 79 and 80.25 or so. With this in mind, we are not ready to start buying this contract yet, and in fact would look for some type of resistive action around the 80.25 level in order to start selling. If we managed to close on the daily chart above the 80.25 level, a lot of things will have changed in our opinion and we would start to buy the US dollar at that point time. Obviously, if we get below the 79 handle on a daily close we would start selling as it would show continued weakness and continuation of the previous trend.

 

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