Sunday, July 13, 2008

U.S. Dollar Index Update for 07.13.2008


Monthly chart continues to show weakness, as it remains well below all key moving averages and below the down trendline in place. Look for continued weakness. No buy signal/pattern evident on this timeframe.

Weekly chart shows consolidation in place. Look for breakdown after consolidation is complete. The only uncertainty is the degree of consolidation before the next major leg down.

Daily chart shows a lower high and a lower low being made. Look to next week for better sense as to whether the consolidation is complete or not. The pattern that is being traced out could lead to higher high before final move down to new lows. IF the index manages a higher high, and goes above 74.33, THEN it is likely that the dollar index will remain in a larger degree consolidation pattern for the next big leg down. Any move up would be a great opportunity for any holders of U.S. Dollar accounts to liquidate.

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