US DOLLAR INDEX:
The US Dollar has exploded higher, marking the first time in years to substantially close above the 200-day MA. The pace, which has been extraordinary, is now showing signs of slowing with several hourly indicators demonstrating negative divergence. We recommend selling USD's in the 77.35-85 region, (December and January peaks) for a move back to the 10-day MA. This also would correlate with EUR/USD's projected double top objective (near 1.46) and is also where the 400-day MA lies. Moreover, with treasury yields falling and commodity prices showing some signs of a temporary base, these forces should cause the US Dollar to correct downward before resuming it's strength.
The US Dollar Index Strategy Summary: LOOK TO SELL USD (BUY EUR/USD)
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