The Dollar Index failed to clear the 86.20 pivot (78.6% of the 88.25-77.69 decline, underpinning today's loss of 20-day MA support. With risk aversion easing globally and the postponement of the Treasury's bank rescue plan, the Greenback has fallen on it's back foot as expected, enabling a number of currencies to break through key resistance vs the US Dollar. If this trend continues, the Dollar Index should next test the mid 83 region, where a key fibonacci retracement and the 50-day MA lie. Once again, only a convincing break above 86.20 will shift the outlook back to the upside .
[STRATEGY] REMAIN SHORT (LONG EUR/USD) (email for entry/exit points)
