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Key Levels for the Rangebound Dollar Index

|Includes: PowerShares DB USD Bear ETF (UDN), UUP

 Metals and oil are rallying strong to the upside, and the US Dollar Index briefly fell below 80 before quickly bouncing off support near 79.60, a previous key support level. In light of these events, I thought it would be worthwhile to take a look at the US Dollar Index weekly chart, to see where we stand.

The horizontal lines below represent support and resistance levels. Traders who like rangebound trading may find it worthwhile to consider buying at support and selling at resistance. Those levels also coincide with Fibonacci retracement levels from the big move down starting in June of 2010, from over 88 to below 76. If the US Dollar Index rallies, the 50% Fibonacci retracement level of this move is at 82, which may be a critical resistance level as well. 

Disclosure: I am long UDN.