US Dollar Index Forecast December 28, 2012, Technical Analysis

The US Dollar Index had a very quiet session during the Thursday trading hours as we essentially sat still. This area that we are currently at is just below the 80 handle, and as a result will face a bit of resistance. Nonetheless, the 79 handle below should be a significant support area as well. With all this being said, we think there is more chance of an upside surprise based upon the fact that the last couple of candles have been hammers. A move above 80 will have the market looking for the 81 handle in relatively short order, and that is the position that we would like to be involved in. As far as selling is concerned, we are simply far too close to the bottom of this massive support to do so.