Forex Technical Update
The daily USD Index chart shows a market that has been consolidating and trading between converging trendlines. The resistance was created in 2012 since January, while the support extends back to August 2011. As price nears the apex, it is attacking the triangle resistance. There is not much momentum to this push and the daily RSI reading is still below 60, a sign of consolidation momentum. 80.75 is seen as a key pivot to confirm the break to the upside.
With price above 80.75 and RSI above 60, we are likely heading towards the highs near 82.00. Above the 82 high, the market open up the 83.70 resistance pivot from August 2010.
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist of FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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