Forecast for USDX for May 29, 2014



Today traders eye prelim GDP and unemployment claims data. The index moved to a 2-month high. The index closed above the 200-day EMA which was a bullish sign for the medium term for 82 and 84 targets, but the overbought indicators stopped the dollar and it did not cross the previous swing high at 80.60 (April 04 high), the index formed a double top at 80.58 levels. We expect the price will correct a bit to 80.30, 80.17 and 80. A day close below the 80 mark, then the bulls is in trouble, the weakness exists only below 80.40 levels.

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