Tuesday, November 14, 2006

Dollar - Which Way?

Last Friday, I mused that the US Dollar Index was at a pivotal juncture with regards to the technical picture.

Pivotal was the correct term, because thats exactly what it did at the support I had drawn in - pivot. This isn't necessarily bullish... yet. There is a month old downward channel to contend with as drawn in on the left. That horizontal support at 84.50ish is still key and a move out of this channel will validate that support and essentially set a bullish path in the medium term.

On the other hand, most of the currencies the USD trades against look technically bullish as well. A move down today continues the channel.

Which way?

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