The USDX continues to be trapped inside a consolidation phase and therefore the critical 75.00 resistance has kept price lower for now. Presently there is an easily identified support location close to 73.40 which may turn out to be an essential point going in to this week.
We have seen clear demand close to 73.40. The previous dollar index blog post called this as “potentially retaining price if found yet again on a fall below 74.00”. This particular point did support price and also has now developed into a well defined horizontal support level and ought to be monitored accordingly if trading the majors.
A breakout beneath 73.40 brings the 72.69 4/5/11 area straight into play and will be a potential 1st target in the event of a break from the key support.