So this US$ is relentless, we have stronger volume patterns to the upside on the hourly daily, weekly and monthly charts. Now the US$ Index closed well over 100 on Friday. So in the very short term we can give you an UPSIDE TARGET per ABC UP on the daily at 102 resistance... that's why I worry we could see a re-run here on the weakness we saw intraday in the markets on Friday. For now, the market has decided it is freaking out now over a stronger $, that is not much of a surprise really, but then I look at the way these dips get bought, and that's a head-scratcher. So bottom line is that if this retraces now before it makes the 102 target, looks like we'll see some support around 98 - as long as 100 holds though, 102 is in the picture.
Looking at the crosses - The EUR/USD is still weak and continues to make lower lows with strong volume on the daily and 4 hour charts. The USD/YEN though on those charts is just moving sideways in a holding pattern for now, so for now the US$ Index action is decidedly about weak Euro - the next phase of this could be the yen weakening against the US$ and that would probably deliver 102 on the index even if the Euro stabilized and went sideways or slightly up...
Happy St. Patty's Day...
