USDollar Further Pressured after Drop Below 9779
Prepared by Jamie Saettele, CMT
“The Dow Jones FXCM Dollar Index (Ticker: USDOLLAR) rally failed at the 50 day average last week (RSI trendline resistance held as well) which keeps us looking lower towards the February low at 9672 and then the trendline that extends off of the August and October 2011 lows. A break of that trendline would strongly suggest continuation towards the October low (as per the above wave count) in a deep 2nd wave correction. Early March highs/lows should help position us for this next larger bear leg. The drop below 9779 increases confidence in the bearish view. 9728 is interim support.
Bottom Line – Lower
--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com
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