The US Dollar Index has lost interim trendline support after stalling at the key 88 handle over the last few days. The reversal coincided with fears of US bank nationalization and a headline that the EU is indeed working out a plan to help out the eastern european countries. In thin afternoon trade, the EUR/USD broke out of key trendline resistance while both USD/CHF & USD/JPY lost trendline support. Overbought RSI and MACD bearish divergence correctly identified the Greenback's relapse and as mentioned in prior posts, a sustained loss of 20-day MA support (now near the 86 handle) will shift momentum to the downside, towards the 50-day MA. Meanwhile, if the 88 handle is cleared, the next stop could be the psychological 90.00 level.
[STRATEGY] LOOK TO SHORT (BUY EUR/USD)
My latest NZD/USD analysis:
