Home » Currency Option Trading » Dollar Index – Daily Chart 6th April 2009

Dollar Index – Daily Chart 6th April 2009

Dollar Index - 6th April Daily Candle Chart

Dollar Index - 6th April Daily Candle Chart

The tone in last week’s dollar index daily chart was decidedly bearish with Friday’s close finishing below all three moving averages mirroring the dollar’s overall poor performance against the basket of currencies.  Last week’s dollar weakness came on the back of continuing optimism in the stock market and a softening in spot gold and spot silver prices.  Safe havens were put to one side as the market reacted positively to the G20 summit.  With prices now moving lower we may yet see a retest of support at the 82.72 region and should this fail to hold then we could a move lower as far back as 78.45.

However, taking a longer view in the weekly chart we can see just how important is the resistance area around 90 and  above and if we are to see a resurgence in the US dollar in the medium term then this resistance will have to be penetrated.

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