Home » Currency Option Trading » Dollar Index – US Dollar Daily Chart 16th July 2009

Dollar Index – US Dollar Daily Chart 16th July 2009

US Dollar Index - US Dollar Daily Candle Chart 16th July 2009

For those of you who are relatively new to the forex market, the Dollar Index is an excellent place to start as it provides a snapshot of the market’s view of the US Dollar, which is weighted against a basket of the major currencies.  Yesterday’s candle on the daily chart provided further evidence that the tone for the US Dollar is extremely bearish, finally breaking the sideways consolidation of the past few weeks and suggesting that any reversal in the fortunes of the Dollar are not likely to appear in the short term.  Indeed this view has been confirmed once again in early trading with a deeper move towards the 79 price point, and the 78.5 support level will not prove pivotal to avoid a steeper decline.  However, if this is handle is broken then we may well see a sustained fall initially to the 76 region where a platform awaits and if this fails to hold there is nothing between here and 72, a region last seen in mid 2008.

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