US Dollar Index Forecast December 26, 2012, Technical Analysis

The US Dollar Index did almost nothing during the shortened Christmas Eve session on Monday as one would expect. The markets looks like it’s finding a bit of support as we head back towards the 80 level, and the real question will then be whether or not we can get above that area. Personally, we think that the market is stuck between 79 and 81 and a larger consolidation area, we could see a bit of choppiness going forward. It’s obvious that the 79 handle is extremely important to this marketplace, and if we managed to break down below that on a daily chart we would see much lower prices. Until then though, we have to think that this chart favors the upside for the short-term.