NEW YORK (TheStreet) -- The Dollar Index Tuesday started to add points slowly during the Asian session and continued doing so throughout the first part of the European session.
Every major currency is trading below Tuesday's opening price against the dollar, even though the U.K. sterling and Japanese yen showed some resilience. The dollar's uptrend seen overnight reflects the selling from the equity markets, and echoes Federal Reserve Chairman Ben Bernanke's comments, which called for a stronger dollar.
Dollar Index Technical View: TheLFB Member Charts
Four-hour Chart: Mixed. Main price points: 74.70 and 75.77. Looking for: Wave V)
The dollar index traded lower recentl, and the market found buyers around the 74.70 area and at the support line connected from Oct. 22. This could be a bullish reversal bounce, but traders still need to see a break of 74.77 resistance for a near-term long confirmation (see the chart).
Dollar support around 75.00 looks very strong which indicates that the bottom of the short blue wave V) may be near.
The euro (Eur/Usd 1.4900) moved almost exclusively lower during the overnight session, but the pace at which it fell accelerated throughout the morning European trade. Since the day started, the euro fell 90 pips and has reached TheLFB Support 1 (1.4895) area, which is also the support area formed by the 20-day moving average.
The pound (Gbp/Usd 1.6800) and the yen were the only major pairs that managed to strengthen during the European session. However, the pound reversed shortly after the U.K. Consumer Price Index numbers hit the newswires. Interestingly, the CPI numbers were rather bullish for the pound, but weren't enough to stop the overall dollar strength.
