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FX Weekly Report
The FX Weekly Report provides the latest, in-depth forex technical analysis about the FX market each week. By Pierre Charlebois.

USD Index – Has it hit bottom for now?

June 7, 2009 at 11:18 am • Posted in fxweeklyreport

Last week I focused solely on the Dollar Index as it was due for a hard and fast turn. Indeed the flip happened and we saw an unprecedented two day move towards USD strength, the likes of which we have not seen for several months.

So… is this now the turn?

As always, I see things as probabilities as no one has a crystal ball. Having said that; the move is very strong which is a good piece of evidence to consider. The channel resistance has also been broken so this adds to the possibility. What I am looking for now is a short term top with a 3 wave retracement back to fibonacci support and then a renewed action towards USD strength.

Whatever happens with the USD will translate into all other pairs, as we know that the USD has become the proxy for all currencies during these still very uncertain times.

USDindx_June_5_09_1hr

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