US Dollar Index Forecast September 17, 2012, Technical Analysis

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The US Dollar Index fell during the session on Friday as the quantitative easing effects on the US dollar continue. We did get a little bit of a bounce off of the 78.50 level however, so a small relief rally could happen. We think that a daily close below the 78.50 level would signify another selling opportunity though, and we certainly think the rallies could be sold at this point.

Above, we see resistance at the 80 handle, the 80.50 handle, and certainly at the 81 handle. Looking at this chart, it’s easy to say that things are overextended to the downside. However, with the new levels of quantitative easing out there, it is hard think that the dollar will continue to gain unless there is some type of meltdown in Europe.

 

US Dollar Index Forecast September 17, 2012, Technical Analysis

US Dollar Index Forecast September 17, 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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