Waiting on a U.S. Dollar Pullback?

The US Dollar Basket continued higher today as the EUR/USD made yet another new low. The US Dollar continues to trend higher as fears surrounding Europe affect the euro. After any accelerated move however will come profit taking and a correction and the US Dollar Basket is due for such a move. The US Dollar reached an intraday high of 87.21 before pulling back steadily into the latter half of Monday’s New York trading session.

5-17-2010 7-35-03 PM.jpg

The intraday 30-minute chart is continuing to show weakness and prices are breaking lower through the support of the uptrend line at 86.30 (S1). This move has broken the support of the Triangle pattern. There are however two support levels that could keep the 30-minute chart from moving much lower. First the 86.20 (S2) level that is near-term support and 85.97 (S3) which was the buying support surrounding the 86.00 whole number. Do not underestimate bullish sentiment amidst even the pullback from 87.21 because the Asian session which could continue the dollar rally if sellers cannot shift the sentiment lower by breaking these two key intraday support levels.

Charts courtesy of Autochartist

Have any requests, comments, or questions? Leave ’em here at the blog!