Archive for USD index

Dollar Index Candle Chart 21 June 2010

Monday, June 21st, 2010
Dollar Index

USD Index 21 June 2010

A negative week for the dollar index which saw the index fall below 85 on the daily chart and marginally breaking below the 40 day moving average which is now poised at an interesting level.  In this morning’s early trading the index has moved below this average suggesting a possible continuation of the recent negative US dollar sentiment, a view which is further confirmed by the 9 day moving average which is now crossing below the 14 day and clearly indicating a bear signal.  With plenty of deep water to the 200 day moving average it is unlikely that we will see a deeper retracement and a more likely scenario is that the price support at 84.50 and below should provide a sufficient cushion for the index to prevent any further falls.  Any recovery will then require a break and hold above the 40 day moving average once again and a reversal of the 2 short term indicators.

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Currency Trading :

Markets fear sell T-Bill sell off as China ends currency freeze

USD Index 14 June 2010

Monday, June 14th, 2010

USD Index Candle Chart 14th June 2010

The dollar index stalled last week pulling back from its recent strong performance and traded marginally lower each day in a series of small, downwards steps.  Friday’s price action found support from the 14 day moving average but in today’s early trading the index has broken below this key level suggesting that we may see a period of bearish sentiment reflected in the index short term.  The key indicator now is the 40 day moving average which currently sits at 85 but provided this offers a platform of support, as expected, then any move lower by the dollar should only be a temporary one.

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Forex Trading News

Switzerland – the new currency manipulator

USD Index 7th June 2010

Monday, June 7th, 2010

USD Index 7th June 2010

Friday’s wide spread up candle on the daily dollar index chart propelled the US dollar against a basket of currencies, finally breaking out of the recent pennant formation which had been forming in the 87 price area.  Friday’s break out is significant as it signals a reaffirmation of bullish sentiment on the daily dollar index chart as we now look set to attack the 89.62 area, last seen in February 2009 where that particular rally failed.  The monthly chart, along with the weekly chart, are both looking firmly bullish with a double bottom pattern now well established on the former.  The longer term target for the index is now 92.63 and should this point be breached then expect to see a run towards the next top at 99.49 and then on towards the psychological 100 price handle.

This bullish sentiment is further confirmed on the monthly chart with the 9 month moving average now crossing above both the 14 and 40 month moving averages, adding further weight to this positive view.

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Forex Market News :

Debt fears drives euro lower

USD Index 2 June 2010

Wednesday, June 2nd, 2010

USD Index 2 June 2010

In a holiday shortened week and against the backdrop of yet more depressing news for the Euro the dollar index has continued to struggle at the 87 price handle and where the recent price action has resulted in a series of doji candles of varying sizes and hues.  The most positive signal for the index in this region has been that almost without exception all the candles have found solid support from both the 9 and 14 day moving averages suggesting that a degree of bullish momentum could begin once again, as the index looks to push towards the next major area of resistance at 89.   However, given the extent of the upwards move in the index during May, clearly evidenced by the wide spread up bar on the monthly chart, we should expect to see the index pause and perhaps pullback before resuming its current upwards trend.

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Currency Market News :

FX market to form global body

USD Inde 27 May 2010

Thursday, May 27th, 2010

USD Index 27 May 2010

The dollar index continues to remain bullish and despite yesterday’s modest pause in the 87.25 region the long term outlook still remains positive.  This was further evidenced yesterday with the low of the session finding solid support from the 9 day moving average.  This is further confirmed by all four moving averages on the daily chart which are now pointing firmly higher and the only issue in the longer term is the near term resistance at 88.50 and beyond and once we are clear of this area then we can expect to see the dollar index run towards 92.32 and above with a consequent strengthening of the dollar against all major currencies as a result.

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Currency Market News

Euro rallies as China moves to reassure Eurozone

Traders move to price in fall in renminbi

USD Index 25 May 2010

Tuesday, May 25th, 2010

USD Index 25 May 2010

The dollar index continues to trend higher with yesterday’s up bar closing back above all four moving averages once again and with the low of the day finding solid support from the 14 day moving average.  In today’s trading the index has pushed higher once again it attempts to break above 87.46 where prices have stalled so far today.  Any break and hold above 88 will signal the potential for a strong move higher as a clearance at this level will leave the major resistance behind, and able to act as a platform of support for a further sustained rally in the dollar.

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Currency Trading News

Is Euro set to be new carry trade darling?