US DOLLAR INDEX:
The US Dollar has edged above the key 80 handle and is now probing 80.42 (December 2004 swing low) . We believe this important pivot will hold and recommend selling the Greenback at current levels. While, negative divergence on several daily studies hint at a short-term dollar top, the major components of the Dollar Index have each found temporary solace. A 6-year bull trend-line at 1.39 should limit EUR/USD downside, the GBP/USD & AUD/USD are both being supported by key retracement levels, and the USD/JPY is threating to lose it's 100-day moving average support. Moreover, the GBP/USD and EUR/USD are both trading within a falling wedge (bullish).
Strategy Summary: LONG EUR/USD at 1.3923, 1st TARGET AT 1.4205, STOP AT 1.3873
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