Forex Analysis : USD Index
Another bad week for the US Dollar saw it close at its lowest level since September 2009, with a 75 handle coming soon it seems.
• The USD Index has some support at 75.72 or so, and again nearer 75.00,
• With a close at 76.39, use 76.30 as the VST breakdown point, and 76.50 as its first resistance.
• A short term bounce will however need to take out resistance at 76.6 to 76.7, and if this occurs the USD Index may post a dead cat bounce to nearer 77 or so.
• Just think what a further US$ 300bn will do to the Dollar. We suspect many a central bank in the emerging world are already intervening to stem the debasing of the Dollar effect, and if it were not for the chaos in the Middle East and North Africa, news of such would be closer to the front page.