Prices took out support at the bottom of what appears to be a Flag formation set from the June 20 low, hinting at downward continuation from here. Sellers are now testing through interim support at 10070, with a break of that exposing the 10010-32 area marked by the early April top and the 61.8% retracement. If fully realized, the Flag setup implies a measured target at 9935. The formation’s lower boundary, now at 10089, has been recast as near-term resistance.
Dow Jones FXCM US Dollar Index - Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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