The opening gap for the US Dollar showed it strength on the backdrop of the European crisis which also prompted the Euro and the Pound to open with a convincing gap that accelerated the continuation of the US dollar. In spite of the lower closing at the 76.54 and opened at 77.16 on a weekly basis would seem to be a corrective move before a downturn would continue. However, the daily open would fill-in that particular gap but the bulls would at the forefront as it looks on the European and American trading sessions.
Indeed, the third quarter of the the year would be identified as the price reversal phase for the USD. As the established low is currently at the 72.90-73.85 (S1-S2) trading range and the resistance levels would be at the 78.05-78.85 levels (R1-R2). The sideways consolidation of the USDX from the past several months would be the length of its corrective move and a secondary leg higher is currently in the making. However, these formations which can only be established on a technical formation may take some time to form. But the rally would continue after every lower price made before the upturn would re-establish its trend.
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