The Dollar Index has completed an A-B-C correction off the December low. A key fibonacci retracement (61.8% of 87.70-77.69) has provided resistance after Monday's clearance of the 100-day MA. Although daily studies indicate more upside potential, the latest rally has been on weak volume and open interest and thus represents a mere correction to the December down-move. If this corrective (fourth) wave remains below 84.71 (second wave base), then a .786 Fibonacci Extension will target my original fifth wave objective at obvious support near the 76 handle. The first obstacle below will be 82.00, a corrective trendline and the 20-day MA.
Strategy Summary: LOOK TO BUY EUR/USD
