US Dollar Index forecast for the week of October 13, 2014, Technical Analysis

The US Dollar Index fell during most of the week, breaking all the way down to the 85 level. The 85 level of course offered enough support to turn the market back around and form a big massive hammer. With this, we believe that a break above the top of the hammer is another bullish and impulsive move higher, but quite frankly this market is a bit overbought at this point in time, so a pullback wouldn’t be overly surprising. Nonetheless, we have no interest whatsoever in selling this marketplace.