USD index testing major support area: 93

US dollar index chart Five year / weekly chart: The US dollar index is testing a major support area of 93. Below that is 84-85. Then 79 comes in to view. Break below 93 could be major. Index is very oversold now, so not surprised to see a pop, and then drop. Momentum could be big on the way down.

Further, in my technical view USD had too much trouble getting much above 100. There’s a solid ceiling in place, while support is breaking down. Lots of potential momentum to the downside given the catalysts: dysfunctional gov’t, enormous debt burden, no signs of Fed effectively tightening or reducing balance sheet in meaningful way, and huge amounts of capital seeking higher returns will likely go to EM and EU.