U.S. Dollar Index (89.63)

Back in August I said I thought that the recovering dollar was stuck below 90, with support in the area of the 200-Day Moving Average at 85.

Since then it has moved lower to 85 and recovered, but it is now stuck below 90 as I suspected. I also suggested that if we successfully tested the 200-Day MA support (at 85), it would lend credence to my view that a real recovery had been launched.

We may still have more work to do before we push up through the resistance barrier at 90, but in my view the tone is positive looking beyond the near term.