USDX further decline - a Major Corrective move

USDX WEEKLY

The FOMC dovish report has placed the USD under similar pressure that resulted in moving back lower below the 80.00 basis levels. Sentiments and commitment by the Fed members in keeping rates at its low levels for an extended period of time has been quite definitive. Investor's concern on inflationary pressures are seen even on the movement of the yellow metal as it moves higher for the week at the levels of USD 1728.00 per troy oz. That resulted to the USDX registering a 79.10 slightly above the more important 78.85 bp technical support.

Moreover, the technical perspective for the USDX have been established as a major corrective bearish move within a major uptrend. Recognizing the initial topping out formation in line with two of the major currency pairs in addition with the correlated cross rates, have signified that such a significant corrective move would extend further than most would actually expect.The USDX candlestick chart in Fig.1 shows that the continuation of a decline with daily pullbacks would be seen moving forward as the Tug of war between major players are in play. These movements were seen accordingly for the past couple of days with the Euro, Japanese Yen and the EURGBP cross in particular. Continuing analysis and chart... http://www.megatrade101.com/