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US Dollar Index – 13th March 2009

US Dollar Index -Daily Candle Chart 13th March 2009

US Dollar Index -Daily Candle Chart 13th March 2009

Yesterday’s shooting star candle, provided further evidence that the dollar index has a bearish tone at the moment, with a failed attempt to hold above the 88.50 region, with the index ultimately closing below both the 9 day and 14 day moving averages. Should we see a further move down in the next few days, then the 40 day moving average will prove critical, along with the support area at 86.40. With the index having penetrated the minor support at 87.60, this looks as though the index will now move lower. The US dollar index now has a bearish tone, following the last few days of sideways movement, and a strong candle pattern will need to be formed before we see a resumption of the upwards trend.