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TFC Commodity Trading Forum

U.S.$ Index/ Pulling Back to Support *PIC*

DX tagged the next resistance pt of 83.64 which was the Sept/11 high double top and was extremely overbought. Note the RSI 21 well above the 70 level which is rare for DX plus rolling over then and the CCI 20 showing a pronounced negative divergence on that high. Price since then has been pulling back consistently and has now reached the 82 support level price broke out over and is bouncing off that level now in this pullback. This is also the 20ema. No guarantee 82 will hold as DX is a volatile market but so far is holding above 82 and respecting this level as support. Price could pullback to 81 which would be a Fib 50% retracement pt or even the 80.40 breakout point which would be a Fib 61.8% retracement of the sharp May rally. Any strong movement in DX such as the near vertical May rally (or a sell off) will have dramatic price consequences for most other markets. While many watch and come up with reasons why the SPX or Crude plunges all that really occurred in reality was DX had a strong rally. There is always a story that can explain it all away............and if there isn't one the financial news media will invent one. They don't have much choice. And the big boys will always provide them with a story regardless. Everyone is satisfied then with their 'story'. Even the ones that lost their shirt are pleased as now they can 'explain it all away' to avoid responsibility for the trade. I guess it's what you call a "Win/Win/Win" outcome.................sad but true.