Home » Currency Option Trading » Currency Options Trading – US Dollar Index 15th October 2009

Currency Options Trading – US Dollar Index 15th October 2009

US Dollar Index - Currency Options Trading

Life continues much the same for the US dollar index, and the US dollar for currency options trading, which seems to show no sign of pausing or reversing the long and unrelenting downwards trend, and in many ways trading is very easy at present, with only only one question that we need to bear in mind, which is simply ‘how far will the index fall before it finds some support’. Technically the next major support level is in the 72 region, so we have some way to go yet for any lull in this relentless pressure on the dollar, which is further increased by the weight of the three moving averages which are all adding the negative outlook.  Fundamentally the picture remains the same as for the last few months, with the US dollar now the favoured low yielding currency of the carry trade, replacing the Japanese yen, and until the fundamental news is consistently positive to suggest that the economy is beginning to turn, and hence push the FED towards an interest rate change, then the picture is likely to remain unchanged for the foreseeable future for currency options trading, with the bearish trends continuing unabated for the US dollar and the dollar index. Despite yesterday’s doji candle, it is unlikely to provide anything more than a temporary reprieve for the index in the next few days, with a minor move higher, and the downwards trend will no doubt continue once this short squeeze is extinguished.

I have covered all fundamental items on the economic calendar relating to the dollar on the euro vs dollar site.  You can also 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.