Home » Currency Option Trading » Dollar Index – Daily Chart For US Dollar Direction 19th June 2009

Dollar Index – Daily Chart For US Dollar Direction 19th June 2009

US Dollar Index - Daily Chart 19th June 2009

US Dollar Index - Daily Chart 19th June 2009

Mark Twain is supposed to have that “news of my death has been greatly exaggerated” and perhaps this could equally be applied to the US Dollar at present as we consider the daily chart for the Dollar Index.  Yesterday’s candle continued the fragile balancing act for the Dollar with the 9 day moving average once again helping to prevent a fall during the day and providing prices with a tightrope along which to teeter, which has been replicated once again in trading today.  With thin markets, triple witching for option, and no fundamental news for the US dollar the trading range today has been even narrower than of late and all the markets are now waiting for a catalyst to inject some much needed momentum.  The question, of course, remains as to whether we will see the Dollar Index rise or fall and, perhaps contradicting current market sentiment, my own feeling is that we may see a bounce and some strength returning to the US Dollar in the short to medium term.  This view is purely based on the technical picture at present of the Dollar Index and would only be reinforced should we see a break through the resistance in place in the 82 to 85 region coupled with strong support from the three moving averages.  If these factors combine then we may well see a move to re-test the strong resistance in place in the 87 to 89 price area in due course.

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