Uncle Buck- Weekly View

The dollar is quite over sold on a daily chart, while the weekly chart still has more bearish going on than bullish.  I am often one of those annoying voices (to the commodity and gold bug herd at least) that is willing to talk up the USD when I tune down the noise and consider technicals and sentiment only. 

Today, as the dollar improves sentiment-wise with every bearish impulse (and every eurphoric impulse in the asset world), the weekly technicals weigh bearish toward the dollar.  We have now closed two weeks in a row below the red neck line and six weeks at or below an important moving average.

Uncle Buck is at the first anticipated level of support, but there is no reason yet to believe he is going to reverse into anything stronger than a test of the breakdown.  There are other very doable support levels down lower (not shown here).  It is best to watch other indicators that when broken down or diverging, may give early hints about when US policy makers are going to be constrained from further dollar-devaluing activities.