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Dollar index (USDX) shies of resistance level again

Yesterday the Dollar index (USDX) came close once again to rising above a technical level that has been highlighted here a few times. That was and still is at 104.33 and it has capped all recent rallies in the index.. The high seen was set at 104.26. The index later closed in the US at 104.09. It has fallen back further so far today and now dropped back below the 104 handle. Part of that fall is due to the drop in the USD/JPY today, but more importantly the price action here reflects a rebound in the EUR/USD, to above 1.0770 once more. The main reason I focus on the USD index here, is because its price action is a very good barometer for the EUR/USD. So, if you are active in that pair, then it surely helps to look at the technical picture on the Dollar index to help guide your trading. So, the index has fallen back to around 103.90 so far this morning. The first major support level of note on this remains the 200 day moving average, which is in place this morning at 103.55. 
 

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