Thursday, March 26, 2009

US Dollar Index takes support at trendline




US Dollar Index has found support at the rising trendline from July 08. Prices have been consolidating for past 4 sessions around this level. We should hopefully see an upmove soon, RSI has bounced off from
just below 30, stochastics has turned positive and we wait its move above 20 level.

The whole market looks overbought (most pairs have a negative corelation with USD Index, except for Yen,Chf,Cad pairs) and should give up some gains atleast over next few days. Trade accordingly - take shorts on rallies