US Dollar Index forecast for the week of December 10, 2012, Technical Analysis

The US Dollar Index had a pretty wild week as we went back and forth between the 81 and 79.50 levels. The resulting candle is a long-legged doji, and this suggests that there is quite a bit of uncertainty in the marketplace, as if you didn’t know.

Looking forward, we will have to see a breakout above the 81.50 level in order to be comfortable taking a longer-term positive position with the US dollar. As for selling, we can see that the 79 level is without a doubt going to be massive support, and needs to be broken below in order to start selling. In the meantime, expect a lot of noise and short-term trading opportunities at best.