US Dollar Index - Candle Chart For US Dollar Index 22nd June 2009
Friday’s narrow spread candle merely served to reinforce the fragile and delicate nature of the Dollar Index on the daily chart with the low of the day finding support once again at the 9 day moving average. This week is likely to prove seminal for the US Dollar and we may well see some volatile and dramatic moves in the Index as the markets absorb the FOMC statements, US GDP numbers and the result of the Treasury Auction. The technical picture must also be seen against the backdrop of this fundamental news and, in particular, the relationship between Russia, China and the US and their inter-dependency on one another vis-a-vis the US Dollar and Treasuries and this may well prove to be the catalyst that the markets have been waiting for. Technically we may be seeing a re-basing of the Dollar Index in the 80 to 81 price range but for any sustained dollar strength to return we need to see a dramatic move and hold above the 87 price point coupled with support from all three moving averages. Should this occur in due course then the knock on effect in commodity prices (particularly crude oil) and in the broader equity and currency markets could be significant.
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.
Leave a Reply