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US Dollar Index Technical Analysis for December 03, 2015

Chart setups:

The daily chart indicates that the US Dollar Index printed/tested highs at 100.51 levels yesterday before pulling back sharply. Please note that the pattern produced yesterday is not a confirmed signal for a potential drop lower, but the earlier bearish signal produced, still remains valid, since yesterdays high (100.51) is might be just a test before reversing lower.

In the medium term outlook, the index looks set to push towards 104.00 levels, but the immediate short term setup indicates a potential drop towards at least 98.00 levels. Please note that 98.00 is also the fibonacci 0.382 support of the rally between sub 92.00 through 100.00 levels respectively. Furthermore, the RSI at 70, also supports the bearish/correction view.

Trading recommendations:

To Trade Forex it is recommended to remain flat for now. Watch for a confirmed bearish signal from here to initiate short positions again.

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