In the face of massive U.S. debt sales that seem to be flying under the dollar radar at the moment, and on days that equities are sold and Treasury notes bought, the dollar is holding ground well in regard to fair market value it seems. The economics are poor, but no worse than elsewhere, and the markets are absorbing massive amounts of debt in the form of new Treasury notes; and yet the Usd is still holding onto support at 84.00 on the dollar index.
That may all change however once the next round of equity buying starts; the dollar index is sitting on support at 84.00, but if that fails the 82.00 areas looks to come into view very quickly. The mighty dollar needs to hold, and then move higher, if it is not to suffer a technical drop lower that may be hard to recover from with the Fed doing all that it can to get the greenback de-valued.
Asian markets may hold the key for initial break-out areas, one way or the other, and the fact that European markets held in the green and Wall Street equities rallied, may just be enough to nudge things down to test near-term support.