TStrong US data helped the US Dollar Index inch above 50Dsma. The USDX managed to close above 50Dsma as well. The Conference Board Consumer Confidence Index, which declined in April, increased moderately in May. The Index stands at 95.4 now, up from 94.3 in April. The US housing data added extra power to the USD bulls. New homes purchasing in the US expanded in April. Intraday resistance is seen at 97.50. Fresh move is likely to take place above 97.50 towards 98.40 and 99.20. We initially advised buying at 94.20.
We have been repeatedly advising buying this pair on every dip with sl 118.00 later raised the TSL for targets at 122 and 123.00 (Article May 14&15). Finally, the pair met our targets after 9 days. Yesterday’s stellar intraday fireworks took place after more than 3 months. The nearest resistance is seen at 123.66 and 124.13 that were highs back in July 2007 and June 2007. Today, the pair made a high at 123.32, which is a double top. Small buying is available above 123.35 with targets at 123.50/123.60 and 124.10/124.20. Before the next move up, we expect the pair to correct a bit targets at 125.00 and 125.70.
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