USD appears corrective at pivotal support

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- After correcting at the previous 2 year trend line and 200 day MVA, the dollar has found support at the 0.382 Fibonacci retracement . If you take a look back over the past couple years, this has been an area of pivotal support/resistance numerous times. I expect a bounce from this level to retest and possibly even break the previous trend line as long as the RSI remains bullish ( > 50).

- From a fundamental perspective, it could be assumed that the USD will be moving downward given the ultra dovish initial commentary from Yellen. This is definitely a risk, but considering all the voting FOMC members views on QE , there is more of a consensus that the taper should have already begun.

- Cyclical, with an insanely overbought equities market, I expect profit taking through the end of the year to further support the USD. As always this is only what I view as the most likely scenario. The alternative scenario should still see the DXY             finding support at its most previous swing low.
Yeah, I don't really expect it to fly away with no resistance, but the reaction today was exactly what I expected. The FOMC minutes revealed a lot of dissent from voting and non-voting members alike that the taper should be getting under way. That being said, I see clues in the equity and bond markets that this could/should be the start of a trend with continuation for the US Dollar. Bond yields rose nicely today which could help fuel some capital inflows. This snapshot shows an interesting turning point for the S&P 500:
Not only is divergence showing up on the RSI again along with the stochastic showing a correction is under way, but the correlation between the SPX and DXY appears to be reverting back to its normal inverse relationship. I highlighted a previous occurrence of this from a couple months ago with similar conditions that had some decent follow through.
alex.a HughGRection
The side way question, william Rasmussen - the name is very familiar. Hummm - google it ^_^
exactly it changed the direction ~ although it hasn't reached the target yet but congratulation ~ I have concerned that it has moved too fast perhaps pullback? before to fly away?
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