The US Dollar Index is consolidating near the 78.6% retracement of the latest downleg, a key last stop ahead a probable full retracement. The DXY is probing the 35-day exponential moving average after a succesful defense of 78.20, a 61.8% retracement. Above the 50-day MA is the 50% retracement at 80.40, while below 78.79 (61.8% of 77.42-79.64) will delay the current recovery for the 10-day MA at 78.51.
The EUR/USD is consolidating above the 50-day MA since rejecting at the 50% pivot retracement at 1.4217. This bearish rejection and the emergence of a possible weekly RSI double top hint of further weakness despite oversold 4-hourly studies and daily RSI. If the single currency maintains 1.4073 (50-day MA) , however, then the medium-term bullish structure remains intact.
