The Dollar Index daily chart continued to consolidate sideways yesterday with Tuesday’s up bar largely being negated by yesterday’s price action which resulted in a narrow spread down bar which closed marginally below the 9 and 14 day moving averages.  The chart is now moving towards a pennant formation, possibly awaiting the outcome of today’s [...]

Yesterday’s moderate show of dollar strength as reflected in the daily chart for the Dollar Index was more of a reaction to end of month and end of quarter liquidations and position squaring rather than any firm evidence of a shift in the market sentiment towards the US Dollar.   Indeed it could be said that [...]

Yesterday’s candle on the daily dollar index chart confirmed once again that the dollar is perched in a precarious position against many of the world’s major currencies ending the day marginally lower and closing, once again, below all three moving averages.  Whilst the index has consolidated sideways throughout most of June in the 79 to [...]

Despite a gapped up open in yesterday’s Dollar Index this positive signal was quickly extinguished during the trading session and failed to deliver on its early promise, ending the day on a down bar which closed below both the 9 and 14 day moving averages.  This lacklustre performance merely served to reinforce the sideways consolidation [...]

Following the somewhat anodyne statement from the FED last night markets decided to favour the US Dollar once again and the Dollar Index duly closed with a reasonably wide spread up bar which managed to hold fractionally above both the 9 and 14 day moving averages.  However, due to the current sideways consolidation and the [...]

Yesterday was a classic example of the markets selling the rumour and today could be the second element of this aphorism, namely buy the fact.  The US Dollar was soundly trashed by comments from various members of the ECB talking up the Euro in the face of hard economic facts in a desperate attempt to [...]

Friday’s narrow spread candle merely served to reinforce the fragile and delicate nature of the Dollar Index on the daily chart with the low of the day finding support once again at the 9 day moving average.  This week is likely to prove seminal for the US Dollar and we may well see some volatile [...]

Mark Twain is supposed to have that “news of my death has been greatly exaggerated” and perhaps this could equally be applied to the US Dollar at present as we consider the daily chart for the Dollar Index.  Yesterday’s candle continued the fragile balancing act for the Dollar with the 9 day moving average once [...]

The dollar index, a key indicator of dollar strength or dollar weakness against a basket of currencies, continues to consolidate sideways in the 80 price region and with a marginal bias to the upside, suggesting that any return to strength of the US dollar is extremely fragile at present.  Yesterday’s narrow spread down bar found [...]

Yesterday’s gapped up opening for the Dollar Index which suggested a degree of impetus in the US Dollar has failed to carry through into today’s trading session which thus far has been characterized by a bearish tone throughout the day, failing to follow through on this positive signal.  However, it is interesting to note that [...]

This week has proved to be particularly difficult so far in trading both the currency options market as well as the spot market, due partly to the lack of fundamental news on the economic calendar, and coupled with the long weekend ahead, with many traders closing positions early, and the markets in general trading on [...]

With the raft of economic and fundamental news due for release this week, along with the G20 summit in London, and the Non Farm Payroll figures on Friday, trading currency options provides a safer and more balanced approach to trading currency, than simply opening long or short positions in the spot market. Used on their [...]

This weeks latest video on the outlook for currency options, starting as always with a look at the weekly chart for the US dollar index. The daily chart for the dollar index also provides a different perspective for your currency options trading, with the US dollar weakness continuing in the index this week against the [...]

A weekly view of the currency options market for the major currency pairs, and as always starting with a look at the US dollar index.

We start the week again as usual by taking a look at the performance of the dollar index, to provide the guidance for our currency options trading for the week ahead.

We start the week again as usual by taking a look at the performance of the dollar index, to provide the guidance for our currency options trading for the week ahead.

The weekly currency options outlook on video for the week of 23rd February, and as usual we start with a look at the weekly chart for the US dollar Index.