Forex Technical Update
USD Index daily chart 5/23/2012 10:28PM EDT
Risk aversion continues a firm grip on the markets and the USD continues to gain from safe haven flow. After consolidating briefing below 82.00, the USDX pushes above this resistance and 2012 high and is at the highest level sine September 2010. This coincides with the EUR/USD falling below the 2012 low and cracking the 1.26 handle.
The weekly chart shows that the next resistance is near 83.60. This is the next target now that 82.00 has broken. However, don't expect this to be a key resistance, especially because this time around the market is going to test it with strong momentum, while it was at neutral momentum the last time. (RSI was at 50 in 2010, while it is likely going to tag 70 this time around).
Fan Yang CMT is the Chief Technical Strategist, trader, educator and a of the main contributors to FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.
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