USD Graphic Rewind: Taking A Step Back | Learn Forex | GoLearnForex.com

Instead of analyzing and discussing the intraday movements of the dollar index, today we are going to take a step back look at a daily chart and try figure out near-term direction. The dollar index in recent days and weeks has been whipped around a fair amount as Greek concerns have risen and fallen, US & Chinese growth outlooks have clouded and a potential US debt ceiling issues continue to pester investors. As such looking at things too closely may blinker our view from see the true, medium-term direction of the index, something we are trying to ascertain today.

We believe that as long as the rising trend line support isn’t breached then the outlook is constructive for the index. There are also weaker support levels to note at 9500 and 9450 but its really the rising support that has our focus. Since we have a constructive disposition toward the index we are looking for a near-term second attempt at breaking back above 9600 and establishing itself above the level before going onto our identified initial topside target which comes in just above 9750.

Written by Jonathan Granby, DailyFX Research Team