The US Dollar Index ends a brutal second quarter on a bright note. The main perpretrator was the British Pound and it's volatile reaction to economic data, which triggered a false-break of a 4-week wedge formation. This highlighted the EUR/USD's inability to clear the 1.4137 pivot and allowed the Greenback to maintain support at a key fibonacci retracement at 79.47. The weaker consumer confidence number in North American trade spurred renewed risk aversion causing commodities, equities and foreign currencies to retreat even further. The 80.52/64 (DXY) and 1.3980/90 (EUR/USD) regions have become the next focal points (where key trendlines and 10/20-day MA's reside). If these levels are maintained, then attention remains squarely on 1.4137 & 79.47. A sustained clearance, however, will refocus former fibonacci pivots at 80.864/ 1.3839 and signals a possible medium-term bottom in the dollar.
