CHARTWORKS - DEC 16, 2010
US Dollar to Extend Uptrend

Technical observations of RossClark@shaw.ca

Bob Hoye
Institutional Advisors
Posted Dec 19, 2010

Following the daily capitulations in October, weekly Sequential Buy Setup on November 5th (resulting an ‘isolated low’) and bullish crossover of the 20-day over the 50-day exponential moving average in late November, the US Dollar Index has now found higher support in the rising trend. This week saw prices become oversold close to 50% retracement from the November lows (at the same point that the Euro retraced only 38% of its decline from November).

We have previously outlined the likelihood of resistance being found at the 55 and 89-day Bollinger Bands as the Dollar rallies out of lows. The 55-day caught the November 30th high. It would be normal for the next rally to achieve a move to the 89-day band, currently at 83.96.

(Click on image to enlarge)

Look for the 50-day ema and 100-day simple moving average to provide overhead resistance in the Euro.

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Dec 16, 2010
-Bob Hoye
Institutional Advisors
email: bobhoye@institutionaladvisors.com
website: www.institutionaladvisors.com

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