The 2011 downleg in the US Dollar Index recently violated the 2009 low but has held above the more major 2008 low, finding support on the long term chart and producing an initial reversal sign too.
- WEEKLY CHART
Current support is coming from the bear channel base projection, following the brief breach of the 74.170 Nov-09 low.
Note that the rebound has been marked by a key reversal week, which provides an initial bull sign.
Further recovery could find resistance from the rising return line at 77.25 just now. - DAILY CHART
On the Daily chart another bear channel base has provided support. S/term resistance has come from the area of the 75.631 Nov-10 low and a 38.2% recovery level around 76.000. A push through here would be s/term positive, building on the reversal week.
However, key resistance lies higher, at the channel top and 76.4% level just above, at 79.380 –a more lasting recovery phase would be probable if this was overcome.
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