USDX Dollar Index Update
- The USDX has penetrated both the recent range highs at 80.72 from 14/12/11 and the 50% Fib retrace of 88.7 – 72.69 as the GBP/USD, heavily dollar index weighted EUR/USD and USD/CHF have seen sharp losses on dollar strength over the past two days.
- This comes after the trend line consolidation area breakout yesterday. Price action at these extremities is key now as the year draws to a close with potential for a breakout scenario or the formation of a range high on any failure to progress beyond the 80.72 area.
- The 79.69 previous resistance becomes support level is still seen as a potential near term base with only two significant moves through this level as can be seen on the attached chart – one of them only on an intra day basis on the 21/12/11.
- The USDX is currently up 2.87% on the monthly basis and 0.72% over this week.
Dollar Index Daily Chart