Home » Currency Option Trading » Currency Options Trading – Daily USD Index Chart 22nd October 2009

Currency Options Trading – Daily USD Index Chart 22nd October 2009

USD Index - Currency Options Trading US Dollar Chart

For currency options trading, the slide in the US dollar index is remorseless and unrelenting, with the 9 day moving average bearing down heavily on any attempt to turn higher, and with the strong resistance level now firmly established above the 76 price point, there is little in the technical or fundamental picture to suggest that this spiral lower is likely to end in the short term. Indeed, today’s weekly US unemployment figures simply added further bearish sentiment to an already waterlogged currency, which continues to flounder ever deeper in the mire of an ultra low interest rate and a constant stream of poor economic and fundamental news. With the US dollar now resigned to the low yielding currency of the carry trade, this pattern of bearish sentiment towards the US dollar will remain in place, if and until the FED signals a rate rise, which seems a long way off at present ( and even further away after today’s news!) So for currency trading options the outlook remains the same as for the last few months which is to sell the US dollar until the technical picture tells us something different!

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