24.11.201109:23 Forex Analysis & Reviews: EUR/USD Intraday Technical Analysis November 24, 2011

The Dollar index remains weak in longer time frames. In short-time frames it has changed its trend from up to down, something that puts pressure on bulls. The Dollar index was unable to break above or even reach the short-term resistance of the 61.8% Fibonacci retracement of the decline from 80.60. The Dollar index reversed back inside the Ichimoku cloud from the 50% retracement. Now it is challenging the upward sloping short-term supportive trend line.

Short-term support is found at 79.50, and below that, at 79.35. Short-term resistance is found at 79.95, and after that, at 80.10. A break above 80 could push the index higher but to stronger resistance. In order to take the upper hand of the trend, bulls should break above 80.60. Only above 80.60, I would be confident about the bullish position. Short positions are safe for now and bears are more confident that they are going to come out as winners and eventually break below 79.20 towards 78.50.

The battle between bulls and bears around 79 continues. This is a very important price level. It could be decisive as to whether the trend is reversing upwards towards 82-83 or continues lower with stronger selling pressures for the Dollar index towards 74-75. Important levels for longer-term traders to watch out are the 81.50 and 79 price levels. Since we are closer to the long-term support, longer-term traders are preferred to go long in this area as the risk is smaller than going short.