DX is reaching the Fib 50% retracment level of the entire one year uptrend. It did that in less than two months and is very oversold. Also note the RSI 21 is below the very oversold 30 level which is rare for DX. Last time this occurred was the end of April/11 and before that Oct/10. Does not guarantee a price low but does tend to be. One can see a bounce and then a lower price low with a higher RSI 21 low which is a positive divergence. This occurred Nov/10. But normally once you see the RSI 21 below 30 and turning back up you've seen the price low. Also note the postive divergence on the shorter term indicator CCI 20 which shows a loss of downside momentum on a lower price low. Bottom line: Expect some good news on DX or more like it some bad news on the Euro nightmare. And you know what happens on a rallying DX and inverse markets. That's what the chart is saying fwiw.........And loading the boat right now after so many breakouts is just way too "obvious" to be a good idea. Something real ugly is out there just waiting to pounce,lol.........................
