Home » Currency Option Trading » US Dollar Index – 8th April 2009

US Dollar Index – 8th April 2009

US Dollar Index - Daily Candle Chart 8th April 2009

US Dollar Index - Daily Candle Chart 8th April 2009

Yesterday’s wide spread up bar closed well above both the 9 day and 14 day moving averages, but failed to have sufficient momentum to close above the significant resistance level now in place just ahead at 86.78 and above. For any move higher in the US dollar we will need to see this region breached with a break above this level, but with a short week due to the Easter holiday and with many markets closed on both Friday and Monday, it is unlikely to occur this week.  The overriding theme to this week’s markets has been the lack of liquidity due to traders closing positions early, a lack of fundamental news on the economic calendar, and as a result unexpected volatility from minor news items.  The direction of the US dollar is likely to be dictated next week by the start of the earnings season in the US stock markets and should we see a raft of poor results and failures to meet analysts expectations, then the Dow could suffer accordingly with a subsequent flight to the relative safety of the US dollar, which in turn could trigger a signficiant move against the major currencies.  For any significant move we will need to see the 86.78 level pierced coupled with a move back above all three moving averages which would signal a return of US dollar strength.

You can keep up to date with all the latest fundamental news, latest currency news and live currency charts by simply following the links, and if you are looking for a good ECN broker again just click the appropriate link.  Remember also that many markets are closed at the end of this week for various national holidays.