FX.co ★ #USDX analysis for December 10, 2013

The Dollar index continues to slide lower in an overlapping (corrective) pattern. Prices are now near the next important support level at the 61.8% Fibonacci retracement of the 79-81.50 impulsive move. The short-term trend remains downward. At the 61.8% Fibonacci retracement prices are expected to find support. This level is important as prices could reverse upwards from that area.

Short-term resistance is found at 80.60 and at 81. Short-term support is found at 80. We remain neutral waiting to see any buy signal that will be given once prices break above resistance.

The only worrying thing for our bullish expectations is the fact that the rise from 79 has lasted half the time the current sideways correction has developed. Usually corrections do not last twice as the trending moves. This is the only worrying sign for our reversal expectations. That is why we remain neutral.