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| Gator's Chart of the Day: DXY0
This is the daily chart of the U.S. Dollar Index. Some people (e.g. FM traders) refer to it as the dixie.
With Greece and the euro in the headlines I think it's important to take a look at the performance of the green back. It is still the world's reserve currency and this chart plots its value when compared to a basket of currencies.
The close yesterday put it right on the lateral support line that includes the October high as well as the November intermediate high which was taken out in December and has since become support. You will also note the trend line (yellow) that tracked rising support quite well until it was broken last week. Also check the fast stochastic that is just reaching oversold now.
Yesterday the index touched the bottom Bollinger Band which coincided with the 50 day simple moving average. From there it moved higher to close on the lateral support line.
With the uncertainty in the Euro Zone over resolution of the Greek debt situation and Portugal looming on the horizon I look for the dollar to move higher from here. This should prove problematic for U.S. equity prices. I think you have to keep one eye on the buck as you plan your trades.
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