This index is particularly odd, if you take a look at the weighting of it as shown by the graphic on the chart.
It is difficult to imagine the euro continuing to strengthen against the dollar without howls from the German exporting companies. And the same can be said of the Yen.
FX trends often notoriously overshoot targets, since trading in forex, like so many other financial asset markets, a matter of the biggest boys sloshing the water around in the tub.
However, a break of this support could trigger another leg down. It will be interesting to watch the existing negative correlation between the dollar and US equities.
