US Dollar Index Classical Technical Report 05.12
DXY:Although the overall downtrend has been quite intense, the market could be showing signs of basing following the latest impressive rebound. Look for a break back above the 18April high on to officially confirm bullish reversal prospects and accelerate gains. However, inability to establish above the 18Apr high will keep the pressure on the downside and open a retest of the recent trend lows. A bullish outside week formation does help to strengthen case for bulls.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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