Well seasonal trends in all time frames show the U.S.$ selling off from Dec 1st right through the month. Apparently this is due to investors world wide that have to get back into their own currencies. BUTTTT I don't' know the entire story as I don't get into that stuff. But all the seasonal charts show this to occur regardless of the exact reason. And of course due to the structure of DX the Euro will rally on a DX selloff just like a teeter tauter will go up at one end and down on the other. No choice about that. The chart of DX is a broken one 'short term' but long term is indicative of a multi year bottom a few years ago. Historically the U.S.$ has a 15 to 17 year cycle and that cycle low ended in April 2008. So very long term looks good for DX. That wont help you with day trading,lol.

So the Daily chart shows the one month uptrendline breakdown with the CCI 20 showing a negative divergence on the last high tipping you off to the loss of momentum and weakness that followed. The RSI 21 has rolled over and is now below the 50 centerline. And the longer term Modified MACD rallied back to the 0 line and rolled over again which is bearish. Price action since the breakdown is bearish with price chopping sideways in a bear flag pattern. It's also below 80.43 minor support now as well but has found support at 80 area where previous trading took place. I don't know if anything regarding the fiscal cliff will affect DX that much. The Euro bail outs and issues like that seem to drive the Euro and DX can only trade in the opposite direction. With the extreme reaction to major news events most trades now are a coin flip. As long as things stay steady the charts will indicate direction. But waiting for the shoe to drop in so many ways makes it near impossible to plan much with trading. Bad news out of Europe could easily turn DX back up to test the broken uptrendline now that it has sold off to 80. No simple solutions Lee. Notice how well the 80 to 81 congestion area served as resistance. I'll be glad when a couple of these issues are off the table. A lot of traders world wide could easliy push the sell button on many markets causing another late 2008 selloff like after the last Presidential election. And with only a month left in DEC they are running out of time and they know this. "Everything" got sold off last time. Tick tock..............................................KABOOM...............