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

US Dollar Index Chart – Daily Chart For US Dollar 16th June 2009

US Dollar Index - Daily Candle Chart 16th June 2009

US Dollar Index - Daily Candle Chart 16th June 2009

Yesterday’s gapped up opening for the Dollar Index which suggested a degree of impetus in the US Dollar has failed to carry through into today’s trading session which thus far has been characterized by a bearish tone throughout the day, failing to follow through on this positive signal.  However, it is interesting to note that the low of today is currently being supported by the 9 day moving average and should this trend continue then we may yet see a move higher in due course.  The other positive signal for Dollar bulls from the last few days is the crossing of the 9 and 14 day moving averages.  However, any positive view has to be counterbalanced by the fact that the 81 price level on the index seems to have provided a stumbling to any reversal on two previous occasions and indeed this seems to be the case again today.  Before we can draw any firm conclusions we need to see this level breached and ideally coupled with a break and hold the 40 day moving average.  If these factors combine then we should see a move to re-test the 82.75 region and then onwards to test the 87 level and above in due course.   Factors which may affect a return to some dollar strength include the equity markets which appear to be faltering as investors either take profits from the recent bull run or decide that perhaps the recent rally has been somewhat overdone.  Factors against the dollar include an ever rising crude oil price and the meeting taking place in Russia of the BRIC economies where it has been reported that discussions have turned to the role of the dollar as the world’s reserve currency.

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