USD Index price action retraced to retest the 78.60 level which is very close to the full 50% Fib Retracement from May 2011 lows to the current July 2012 high of 84.10. Softening USD was a direct result of the anticipated FOMC announcement of QE3 which is quite simply extremely Bearish
for the USD. All of the indicators like MACD
. And RSI
are currently at oversold levels indicating the potential for a corrective bounce back before the prevailing trend continues to push the price action lower. Current resistance on the upside is located at 80.35 followed by 80.70 which is the 200 Day SMA
. Alternatively support on the downside is located firstly at 78.30 followed by 78.10 and 76.80 which is the full 61.8% Fib. Retracement from the 84.10 level.