Home » Currency Option Trading » US Dollar Index – Currency Options Trading 2nd June 2009

US Dollar Index – Currency Options Trading 2nd June 2009

US Dollar Index - Daily Chart 2nd June 2009

US Dollar Index - Daily Chart 2nd June 2009

Yesterday’s daily candle on the dollar index chart hinted at a possible short squeeze in the index ending the day with a small body and a deep lower wick, indicative of a hammer, but so far in early trading this morning this signal has failed to be confirmed and the downtrend in the index appears to be continuing unabated with the initial level being 78.40 and should this be penetrated, which it probably will, then the next significant level is at 76 and below this we begin to plumb the depths at 72.  Should we get as far as this last figure then we could currency pairs such as the pound dollar back to 2 and the euro dollar above 1.6.

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