Dollar Index Technical Analysis – 19th February 2013
- The USDX - 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 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 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 dollar/yen pair, with an associated 13.6% USDX weight for the Japanese yen, has likewise seen a marginal 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.
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