Daily Breakdown and Weekly Support For U.S. Dollar Index
Corey Rosenbloom: True to expectation, an outcome of “No Taper” from the Federal Reserve sent the US Dollar Index breaking a critical support level on the charts.
Let’s take a look at the Daily Breakdown into a Weekly Support level that must hold now, or else risk a further collapse from a broader chart pattern.
We’ll start with the smaller picture breakdown on the Daily Chart:
As we saw from yesterday’s “Instant Intermarket Update after the Federal Reserve Announcement,” traders reacted bearishly – as would be expected – with the announcement that QE3 will continue without adjustment (“no taper” outcome).
Similarly as would be expected, gold, oil, and US Stocks surged on the news.
For the US Dollar Index, we see the critical confluence support level into the 81 region which failed as support – triggering a short-sale signal – after the announcement.