US Dollar Index Forecast December 20, 2012, Technical Analysis
The US Dollar Index fell again during the Wednesday session as the markets continue to try and price in a deal coming out of Washington DC involving the “fiscal cliff” talks. However, we are heading towards the 79 handle, and see this as a significant bottom to the market. We have seen the market essentially grind sideways over the course of the last three months, and as such think that there is high potential for this market to turn back around and bounce.
With that being said, we think that any supportive candle right around the 79 handle looks like an excellent buying opportunity. However, if we managed to get a daily close below the 78.80 handle, we would consider that level broken and start shorting the US Dollar aggressively.