US Dollar Index Forecast December 6, 2012, Technical Analysis

The US Dollar Index fell during the session on Wednesday, but we cannot a supportive bounce in order to form a hammer. We are currently just below the 80 handle, so this does look like we’re trying to defend this general vicinity. Also, it should be noted that the markets had a very bizarre day as a lot of the “risk off” trade came back into play, even though the Dow Jones Industrial Average rose.

Nonetheless though, at the end of the day we saw selloff in general. This could be a harbinger of what could be coming. We would need to break over the 80.50 level to be absolutely convinced of Dollar strength, but at this point time it does look like Thursday should be a positive session for the US dollar overall.