DXY is overbought near term. A pullback to the 20 day moving average area near 89.00 is expected where buyers may step in. Over 89.15 (YTD high) would resume strength towards 90.00 next.
EURUSD posted a new YTD low at 1.2164 on December 23, 2014. The falling 10 day moving average currently at 1.2257 has been capping so far. A clean break below 1.2164 would weaken towards 1.2100 then possibly 1.2000. On a stronger bounce above the 1.2360 area, it would defer the downside and open the 1.2570-1.2600 resistance zone.
DXY daily chart shows that the US dollar may be potentially basing above key support zone of 79.69-79.76. An upside break through 80.83 (20 Dec lower high) would confirm the falling wedge breakout and rally towards 81.47.
