Dollar Index Makes Slight Advance

NEW YORK (TheStreet) -- The dollar index took advantage of the initial declines in equity markets around the world in Thursday morning trading and managed to advance a few points ahead of the U.S. open.

Most of the dollar's gains came during the European session, after relatively flat Asian currency trade. The macroeconomic calendar was light on Thursday, with the European calendar being clear of any red-flag reports. The U.S. session will see the unemployment claims figures and the oil inventory report.

Dollar Index Technical View: TheLFB Member Charts

Four-hour Chart: Short. Main price points: 74.95, 75.60, and 76.82. Looking for: Wave iv pull-back

The dollar index made a small turning point recently after a few tests of the 75.00 area over the past few days. For now, we are still looking for a move lower into the 74.00 support zone, where red blue wave V), sub-wave of a larger wave V may hit the bottom (see chart).

The dollar index currently is showing signs of a long corrective bounce higher in black wave iv from where traders may look for final wave v.

The 75.60 support zone must hold, otherwise the wave count will have to be reworked.

The euro (Eur/Usd 1.4950) plunged 80 pips during the European session and is now trading just above TheLFB R1 (1.4940). A break below this price point will send the pair straight into the 20-day moving average, which is patiently waiting in the 1.4885 area. During the European session a report showed that European industrial production advanced 0.3%, less than expected.

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