Home » Currency Option Trading » Dollar Index Daily Chart – 11th June 2009

Dollar Index Daily Chart – 11th June 2009

US Dollar Index - Daily Chart 11th June 2009

US Dollar Index - Daily Chart 11th June 2009

Yesterday’s candle on the daily chart for the dollar index really summed up the overall sentiment across the markets at present, ending the day with a long legged doji which closed marginally above the 14 day moving average, but clearly indicating a market that is indecisive and consolidating.  This is indeed a trend we have seen across many commodities (with the exception of crude oil) and currency pairs in the last few days as the dollar decline stalls and begins to look for a new direction moving forward.   It is interesting to note that yesterday’s price action failed to follow through on the bearish signal of Monday and indeed the low of Tuesday found support at the 9 day moving average, and with prices both yesterday and today moving above both the 9 and 14 day averages one could argue that the dollar index is attempting to rebase at 80ish price level.  Only a sustained move back above all three moving averages coupled with a close above the 87 price point would indicate that the dollar’s demise has, for the time being, been consigned to the history books.  In addition, and adding some weight to this argument, the previous bounce in the US dollar index which began on 18th December 2008 also started with a support based at the 78.50 level, taking the index back up to 89.50 so we could be seeing a replay of this price action.

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