US Dollar Index Weekly and Daily Review

 The U.S Dollar Index which measure the dollar relative to wide basket foreign currencies, was essentially flat in Daily USD Index. Which shows a remarkable resilience in light of the stock markets rally. nearly all asset other then stock are in long-term down trends including U.S. Treasury bonds, commodities and precious metals. When U.S stock join and major indices join these trend and start to turn down, deflation should start to kick in deflation begin : 'A general decline in prices caused by a contraction in the amount of money or credit. Most will recognize this as the opposite of inflation and the Dollar index will rally strongly. 

With Poseidon Line drawn from the low of 10 April  2011 to the high of may @ 85.05 then a major pull back to 79.20 the dollar index has maintained it higher highs on the weekly standing currently trapped in-between the guppy long term and short term moving averages @ 80.97. on the weekly time frame

there is also a possible 3 wave up in the dollar index but this will only be confirmed if there is a rise and hold above the 50% fib retracement @82.02

It is possible that traders are waiting for a catalyst before committing to either side of the market this is why my analysis has to possible scenario to consider.

On the daily Perspective the short term moving average and slightly crossing over the long Moving averages and a possible completion in WXY and wave 2 completion  and a rise in  a third wave rally could be on the cards also however depending on the figures out this week may shed some light on the situation as from 

A rise above the 81.00/81.50 level may boost the bullish view
On Wednesday 08/0/2014, the U.S. Federal Reserve is set to release its latest minutes. The minutes should offer traders key reasons why the central bank voted to taper and may reveal future plans for the reduction of monetary stimulus.On Thursday, the Bank of England and European Central Banks will release their latest policy statements. Talks are circulating that the  BOE may raise its unemployment target, currently at 7%. The European Central Bank are expected to leave interest rates unchanged, but President Mario Draghi may be dovish in his post-meeting press conference. Finally, on Friday, the U.S. will deliver  the all important  Non-Farm Payrolls data for December. This report should determine whether the central bank cuts another $10 billion from its stimulus budget.