Has the Dollar Peaked?
07/07/2010 12:00 am EST
The US dollar index reached the weekly downtrend in the 89 area four weeks ago and has declined since. The weekly OBV did confirm the highs but has dropped below its WMA. It is still above trend line support, though it could be tested in the next few weeks. There is first Fibonacci support in the 83.20 area with the 50% support at 81.60. If a weekly top has been completed, we should still see a failing two- to three-week rally back to the 85.50-86.50 area.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.