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TFC Commodity Trading Forum

U.S.$ Index/ Critical Point! *PIC*

DX broke out again to another rally high above the previous resistance pt, but on weaker momentum as shown on most oscillators displaying negative divergences. Even the long term Modified MACD showed a negative divergence and a roll over down again. Price has pulled back to 1st price support of 82.90. This is also the 3 month uptrendline which puts added importance on this price point. Price is king and failure to hold at this 82.90 'area' will suggest a more significant pullback. Price has been in a solid uptrend for about a year now and could pull all the way back to the major uptrendline at the 80 area and still be bullish. While this doesn't seem like much of a possible pullback it would be "HUGE" for DX and see inverse markets rally like crazy. Price doesn't have to pullback that far but any break below 82.90 will see at least some consolidation in the DX uptrend and rallies with inverse markets.