US Dollar Index Forecast December 11, 2012, Technical Analysis

The US Dollar Index had a very flat day on Monday as traders came back from the weekend in order to sit around and wait on the FMOC meeting on Tuesday and Wednesday. This meeting will be an interesting one follow, as we will have to wait and see whether or not the Federal Reserve is willing to expand its quantitative easing or, knowing that the so-called “Operation Twist” is coming to an and later this month. Because of this, the markets will be interested to see what the Fed does, and we also will have to pay attention to one congressional leaders are talking about as far as the “fiscal cliff” talks.

The shooting star from Friday is certainly very bearish, but we are sitting on top of a lot of support presently. Because of this, we would have a fairly neutral outlook on this market, because we can see an argument for both directions currently. Expect choppy motion until the Federal Reserve has its statement on Wednesday.