Although equity markets have pulled back ahead of the possible Federal Reserve tapering news on Wednesday, it is interesting that there has not really been the Dollar strength that one might have expected against the Euro and Sterling. At the same time however, Dollar / Yen has gone into wait and see mode hovering just above 102.
Near term consolidation at and above the 20 day moving average at 102
Support above former July resistance zone –a positive bull flag arrangement
Best case scenario target as high as 109 – a May price channel top
Most traders likely selling into strength near year highs
Latest 20 / 50 day moving average golden cross suggests upside argument will win
Target towards July rising trend channel top of $1.41 for early 2014
Positive consolidation at and above previous $1.63 2013 year highs
Extended July support line for the RSI / post July rising trend channel
Above 50 day moving average at $1.6154 targets towards 2013 resistance line projection at $1.69 plus over next 1-2 months.