Home » Currency Option Trading » US Dollar Index – Currency Options Trading 11th May 2009

US Dollar Index – Currency Options Trading 11th May 2009

US Dollar Index - Currency Trading Options 11th May 2009

US Dollar Index - Currency Trading Options 11th May 2009

Last week ended with a bang for the US dollar index on the daily chart, with a wide spread down bar closing the day just below the 82.50 level, and adding a very bearish tone to the index, following Thursday’s indecisive doji candle, breaking below the small resistance area at 83.75 built earlier in the week. With all three moving averages now weighing heavily on the dollar index, we could see a move lower in the next few days, suggesting further US dollar weakness to come against a basket of currencies, particularly if the dollar index fails to hold at the current 82.50 level, which now seems increasingly likely. If so we could see the 80 price point tested once again.

The principle fundamental news on the economic calendar on Friday was of course the Non Farm Payroll numbers, coming in slightly better than expected at -539,000 against a forecast of -590,000, however whilst the decline in jobs may be levelling off the unemployment rate increased from 8.5% to 8.9%, the worst in 26 years as companies continued to suffer in the current economic climate.

You can keep up to date with all the latest fundamental news on the economic calendar, latest currency news and live currency charts by simply following the links.  I have also included details on an excellent ECN broker.