USD/INDEX Outlook 23 Jul 2013

As shown on the weekly chart below. The USD/INDEX declined after the false breakout above 84.54 levels. Printed a new high at 84.91 levels. Pressure now is on the key support 82.55. Stability below this level on a weekly closing basis will pave the way for retesting the main support  80.59. A weekly close below 80.59 will have large bearish implications towards 78.90 ahead of 76.70… A rejection on weekly from/above 80.59 is likely to bring consolidation within 80.59/84.90 range.

On the daily chart, the pair is under pressure, but it’s approaching from the key support  81.70 where a halt is suggested, below 81.70 will extend weakness towards the main support on daily at 80.59, a daily close below pave the way towards 78.90 levels.

On the upside, resistance is at 83.57 levels, stability below this level will keep the pair under pressure, but stability above this level on a daily closing basis would delay the bearish move and flip bias back to the upside for retesting 84.54/84.91 levels.

In all as long as 84.91 holds on a weekly closing basis, the USD/INDEX will remain under pressure with risk towards 80.60 ahead 78.90 levels.