The Dollar Index has once again probed 86.20, a key fib (78.6% of the 88.25-77.69 decline). This time, however, daily studies such as MACD & RSI indicate waning momentum. Although, the overall structure remains bullish while above 20-day MA support, the Greenback stands to lose with risk aversion easing. Risk appetite's "technical" shift can be seen by the performance of the Yen and Global equity markets over the last few sessions. If this trend continues, the US Dollar Index should break below the 20-day MA (now at the 85 handle) and immediately test the 50-day MA. If, however, a rally can convincingly break above 86.20, then all bets are off.
[STRATEGY] LOOK TO SELL (BUY EUR/USD) (email for entry/exit points)
For my latest Forexpros.com analysis.....
http://www.forexpros.com/technical/analysis/nzd:-falling-wedge-break-out-probes-the-20-day-ma-17902
