Seeking Alpha

ForexLive's  Instablog

ForexLive
Send Message
We provide real-time forex news and analysis at the highest level while making it accessible for less-experienced traders. Since 2009, ForexLive™ has been one of the most-visited foreign exchange trading hubs.
My company:
ForexLive
My blog:
ForexLive
  • US Dollar Index Tests The March High 0 comments
    May 14, 2012 1:02 PM

    The US Dollar Index (DXY) has been moving steadily higher after bottoming on May 1st. The index has been up on 9 of the last 11 trading days. The move has taken the index from a low of 78.60 to the high today of 80.69.

    On the move higher,

    • The price initially bottomed at the 38.2% of the move up from the August 2011 low. That level came in at the 78.60 level and the low on May 1st came in precisely at this key support level.
    • Mid trend, the price pushed above the 100 day MA (blue line in the chart above) at the 79.62 area. The move above this level gave the longer term traders more confidence in the upside,
    • The price today is pushing against the next key target at the 80.74 level (high from March 2012). I would expect some profit taking against this level.

    Although there should be sellers against the resistance today (and a potential correction down), given the trend like move this month, a break above the level should not be ignored. The index has been in a non-trending range for the last 4 1/2 months. Anticipating a break out and continuation of the trend would therefore not be surprising. The next key target on the daily chart would be the high of the year at 81.78 the target.

    Looking at the hourly chart, the index moved above an upper trendline today at the 80.56 area. Stay above this level and the bulls are still in firm control. A move back below the level today has 80.34 and the 100 hour MA at the 80.15 area. Trend line support also comes slicing across at this area. If the trend is to continue higher, traders would like to see this MA and support trend line to hold on a corrective move lower. A move below would indicate a shift in the trader sentiment for the dollar. The price has been above the 100 hour MA since May 2nd.

    http://www.forexlive.com/blog/2012/05/14/us-dollar-index-tests-the-march-high/

    Themes: Dollar Index
Back To ForexLive's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

  • ECB's Constancio: Crisis not over; Constancio, a member of the ECB's managing board, is speaking in Frankfurt.
    Mar 28, 2012
  • Best hope for the EUR is an afternoon US equity rebound with European equity markets closing.
    Mar 6, 2012
  • Now I've heard everything...Talk swirling that the ECB will lend to the IMF, who in turn, will lend to euro states. Italian yields falling.
    Nov 17, 2011
More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.