USD INDEX

Hello ,
this weeks market crash was due to the strong dollar , I see resistance at 78. from current cmp of the usd index at 72 . A consolidation breakout is visible in the USD index, which is the main index for the USD in comparision to all currencies .
There are a number of factors pointing to resistance around 75-78. First, the trendline extending down from January-February 2007 comes in around 78. Second, the December 2007 high marks resistance around 78. Third, the falling 40-week moving average marks resistance just above 76. And finally, the January-February consolidation can also act as resistance around 76. Taken together, I am marking a resistance zone around 75-78 for the upside target.
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Altough our target of 5200 nifty still remains, I would advice all investors to remain cautious and keep a watch on the USD index .