US Dollar Classic Technical Report 08.08.2012

Prices put in a Hammer candlestick above support at a major rising trend line established from late July 2011, hinting a bounce may be ahead. Initial resistance lines up at 10038, the 61.8% Fibonacci expansion, with a push beyond that targeting the midline of a falling channel carved out over the past two months, now at 10076. Alternatively, a break below support (now in the 9975-92 area) initially exposes the 100% expansion at 9925.

Dow Jones FXCM US Dollar Index - Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak

To be added to Ilya's e-mail distribution list, send a note with subject line "Distribution List" to ispivak@dailyfx.com