Long term trend: Up
Medium term trend: Up
Significant Levels: Horizontal Resistance (11010), Horizontal Support (10880)
US Dollar strength is so strong that it cannot maintain its momentum. As what I'm always saying, a strong move cannot be maintained for an extended period of time. Though USD is moving down, we are still Bullish here. Retracements are normal. Traders/investors are just taking their profits. That's why the USD is going down for now. This is also supported by the weak data from US. Again, although this is the case, we are still Bullish here. This index might still go down to the support level or the 0.618 Fibonacci level.
Use this information to trade currency pairs that has USD in it. This index is highly correlated to EUR/USD pair because USD Index is composed mostly of EUR, so you might want to start with that.
Trade well.
Medium term trend: Up
Significant Levels: Horizontal Resistance (11010), Horizontal Support (10880)
US Dollar strength is so strong that it cannot maintain its momentum. As what I'm always saying, a strong move cannot be maintained for an extended period of time. Though USD is moving down, we are still Bullish here. Retracements are normal. Traders/investors are just taking their profits. That's why the USD is going down for now. This is also supported by the weak data from US. Again, although this is the case, we are still Bullish here. This index might still go down to the support level or the 0.618 Fibonacci level.
Use this information to trade currency pairs that has USD in it. This index is highly correlated to EUR/USD pair because USD Index is composed mostly of EUR, so you might want to start with that.
Trade well.