US Dollar Clears Its First Hurdle

11/29/2010 2:54 pm EST

Focus: FOREX

Thomas Aspray

, Professional Trader & Analyst

chart
Click to Enlarge

The dollar index is showing nice gains today as it has cleared the first Fibonacci resistance at 80.40, suggesting a move to the 50% retracement resistance at 82. There is a strong barrier of chart and retracement resistance in the 84 area. Though the weekly on-balance volume (OBV) still suggests that this is a rally within the downtrend, the daily OBV is quite positive. Take a look at the pullback on Nov. 22 (see circle), during which the dollar index tested the former downtrend and the OBV tested its rising weighted moving average (WMA), which offered a good trade set-up.

Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.

  By clicking submit, you agree to our privacy policy & terms of service.

Related Articles on FOREX