Published on Thu, 2/07/09 |
Currency Option Trading

US Dollar Index - Daily Index Chart 2nd July 2009
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 NFP’s data before providing us with some much needed momentum and direction. There is, of course, the straight fight between Europe and the US for “manipulation” of their respective currencies which they need to either weaken or strengthen. In addition the mix is complicated by the Chinese perspective of the US Dollar and their desire to discuss the issue of the Dollar’s reserve status at next week’s G8 meeting. The bottom line is simply that geo political factors are now starting to dictate the future direction and price action for the Dollar Index, rather than simple and straightforward technical analysis, and with the Chinese sitting on a barrel load of US Dollars this may well prove to be seminal in the longer term.
You can keep up to date with all the latest fundamental news on the economic calendar, latest currency news and live currency charts by simply following the links. I have also included details on an excellent ECN broker.
Published on Wed, 1/07/09 |
Currency Option Trading
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 [...]
Published on Tue, 30/06/09 |
Currency Option Trading
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 [...]
Published on Fri, 26/06/09 |
Currency Option Trading
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 [...]
Published on Thu, 25/06/09 |
Currency Option Trading
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 [...]
Published on Wed, 24/06/09 |
Currency Option Trading
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 [...]
Published on Mon, 22/06/09 |
Currency Option Trading
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 [...]
Published on Fri, 19/06/09 |
Currency Option Trading
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 [...]
Published on Thu, 18/06/09 |
Currency Option Trading
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 [...]
Published on Tue, 16/06/09 |
Currency Option Trading
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 [...]
Published on Mon, 15/06/09 |
Currency Option Trading
Friday’s candle for the Dollar Index finished the session trading marginally higher on the day and closing above both the 9 and the 14 day moving averages which have now crossed, suggesting that a modicum of bullish sentiment for the US dollar has now entered the market. Indeed this view has been reinforced with a [...]