U.S. Dollar Analysis for 12.29.2007

DX AO - U.S. DOLLAR CASH INDEX

Daily chart shows an abc 3 wave pattern off the November 26, 2007 low. This is a corrective pattern, and bulls quickly found resistance at the 89sma, where bears quickly overcame bulls and took it down sharply last week. Look for a test of the November 2007 low, and then eventually lower. First downside target will be the .72 area.