The US Dollar Index has lost some ground over the past few sessions on the back of the rebound in equity markets. Indexes such as the Dow Jones Industrial Average and the S&P 500 have each eclipsed their 9-day MA's after reversing out of falling wedge patterns, guided by bullish MACD & RSI divergence. The corresponding bearish divergence has triggered Dollar weakness below the November high pivot at 88.46 to close below the 20-day MA. This has enabled the EUR/USD to eclipse the 20-day MA convincingly for the first time in 2009 and signals a reversal for the Greenback that initially targets the 50-day MA near the 86 handle. It will take a sustained rebound back above 88.46 to alter the bearish structure.
[STRATEGY] LOOK TO SELL (BUY EUR/USD)
