USDX: Bearish scenario respected

USDX: Bearish scenario respected

Under the title “Signs of double topping “, we have discussed our technical outlook for the USDX and we mentioned the possibility of achieving a breakout below the neckline of the double top pattern.

usdx-29-04-2012-update

USDX has acted in response to the outlook, falling freely below 96.20 boundaries, influenced by the coverage from moving averages and Parabolic SAR.

Eyes are now on today’s recorded low in the 94.70 regions, as a breakout below it will expose the technical objective at 93.70.

Ultimately, we still see chances for achieving see kind of fluctuation with RIS14 touching the oversold territories, but it may not be able to change the bearish reversal.

What is the U.S Dollar Index?

 (USDIX) is an index or rather a measure for the greenback value versus a basket of foreign currencies.

Actually, the dollar’s value is compared by weight with specific 6 currencies as follows:

1-EURO: 57.6% weight.

2-Japanese yen: 13.6% weight.

3-British pound: 11.9% weight.

4-Canadian dollar: 9.1% weight.

5-Swedish krona: 4.2% weight.

6-Swiss franc: 3.6% weight.

USDX EN

 Historically, it was launched in March 1973 after the Bretton Woods system has been deactivated and at the start its value was 100.00.

Amir El Araby

Co-Founder & Chief Global Strategist at FxComment.com, with 17 years’ experience in the technical analysis studies for FOREX, Commodities and Indices. Amir El-Araby worked as a mentor for many companies and institutes, where he presented new methods for trading in the financial market. Amir is a member of ESTA (Egyptian Society of Technical Analysts). Amir is also the official partner of Harmonic Trader (Mr Scott Carney) and the official instructor of harmonic trader association for Arab countries.

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