Dollar Index Technical Analysis

The USDX - US Dollar Index - forex trading strategies measures the value of the USD (United States dollar) versus a basket of foreign currencies. The break under USDX 79.00 area support on the 1/2/13 culminated in a pinbar rejection/false breakout scenario and has seen the dollar index climb to previous resistance in the 80.60 – 80.70 zone. This area has seen resistance since trading forex strategies November and marks the recent range highs. Any sustained break higher brings the 81.45 area highs as a potential focus, an area aligned with the 50% corrective retrace strategies forex trading of the 84.10 – 78.60 swing lower. A move to the downside would have us monitoring the ...

• The USDX - USDollar Index- measures the value strategies forex trading of the USD (United States dollar) versus a basket of foreign currencies.
• The break under USDX 79.00 area support on the 1/2/13 culminated in a pinbar rejection/false breakout scenario and has seen the dollar index climb to previous resistance in the 80.60 – 80.70 zone.  
• This area has seen resistance since November and marks the recent range highs.
• Any sustained break higher brings the 81.45 area highs as a potential focustrading forex strategies, an area aligned with the 50% corrective retrace of the 84.10 – 78.60 swing lower.
• A move to the downside would have us monitoring the 80.00 round number area and the coinciding 80.15 area cluster of daily highs from January.  
• The key EURUSD pair (EUR has a 57.6 per cent USDX weighting) dropped marginally today (18th February) to $1.3352 following mildly dovish rhetoric from the European Central Bank president Mario Draghi.  The USDJPY pair, with an associated 13.6% USDX weight for the Japanese yen, has likewise seen a marginal forex trading strategies dollar upside move today as the JPY dropped around 0.3 per cent versus the euro and 0.5 per cent versus the greenback to Y93.95