Home » Currency Option Trading » Dollar Index – Daily Chart USD 9th June 2009

Dollar Index – Daily Chart USD 9th June 2009

US Dollar Index - USDX Daily Chart 9th June 2009

US Dollar Index - USDX Daily Chart 9th June 2009

Yesterday’s candle on the daily US dollar index chart, has given us an early warning signal that the return of dollar strength that we have seen in the last few days, may have already run out of steam! The candle closed the trading session with a small body but a deep upper shadow, suggesting that the buying momentum has been crushed by the bears, who are selling into the market once again driving the index¬† back lower during the day, and as expected we have seen the index fall for much of today. If the session today ends with a wide spread down bar as expected, then this will confirm the signal of yesterday, and we should therefore expect further US dollar weakness to follow in due course. This view will be reinforced should the index fall back below the minor support level at 80, which is currently providing a barrier to a move lower today. However should this be breached, then we can assume that the rally in the dollar is over for the time being, and that the bearish tone has been reinstated once more, particularly if this coincides with a break below both the 9 day and 14 day moving averages once again.

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