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Dollar Index – 20th July 2009

USD Index 20th July 2009

USD Index 20th July 2009

Friday’s candle on the US dollar index chart, provided little respite for dollar bulls as the index continued to grind lower, in an ever deepening slough of depression, as the moving averages continue to weigh heavily on the daily chart.  Given the technical picture at present it is hard to see when or how this downwards slide will be halted, and what is becoming increasingly worrying is that the chart is beginning to look unstable, with the possibility of a massive breakout to the down side as a result.   With the 40 day moving average now crossing below both the 9 day and the 4 day averages, this seems increasingly likely moving forward, and with little on the fundamental news front today, there seems little prospect of any relief for the US dollar in the short term.   A break below the 78.40 level will deepen the gloom, and any hold below this level will confirm the bearish picture, with a much deeper move becoming more of a reality, possibly as low as the strong support level in place at the 72 price handle.  Only time will tell but US dollar bulls may be waiting for some time yet for any sustained recovery.

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