$USD US Dollar Index Weekly Chart Oversold Falling Wedge Positive Divergence Sideways Symmetrical Triangle

$USD US dollar index weekly chart lost the bottom rail of the sideways symmetrical triangle three weeks ago. Price then came up for a back kiss, then collapsed last week. At 75.7, it sits directly on top of support from November 2010 and Fall 2009. Overbot conditions, falling wedge and positive divergence over the last six months wants to bounce it back up. Even if dollar index price moves lower to test the next level of support at 75, the positive divergence should remain, so price will want to head back up any day and probably perform another back kiss of the lower rail at 77.

The indicators were, and still are, very agreeable to a continued sideways bias, so a move between 75 and 81 is reasonable for the months ahead. The positive divergence negates any thinking about a potential dollar collapse. Also, Euro leaders meet this week to decide on measures to save Portugal which may weakend the euro. Weaker euro=stronger dollar and visa versa. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.