US Dollar Index Forecast December 14, 2012, Technical Analysis
The US Dollar Index futures rose after initially falling during the session on Thursday in order to close just below the 80 handle. The candle looks a bit like a hammer, so we could start to see some significant support in this general vicinity.
Currently, I see a massive support zone between 79 and 80, and as such I think that any break down in the US dollar will be met with fairly supportive action. Because of this, we are not willing to sell at this point time, at least until we break down below 79. Until then, it’s actually safer to buy at this point in time, but understanding that 81 will more than likely is the ceiling between now and the end of the year.
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