Home » Currency Option Trading » US Dollar Index – Daily Candle Chart 2nd April 2009

US Dollar Index – Daily Candle Chart 2nd April 2009

US Dollar Index - Daily Candle Chart 2nd April 2009

US Dollar Index - Daily Candle Chart 2nd April 2009

The weakness in the Dollar Index first seen on Monday, with a failed effort to rise, and subsequently confirmed by the bearish signal in yesterday’s trading, closing with a bearish engulfing candle, has converted into a  fall this morning in early trading, with the US dollar index falling back from a high of 85.45 to the current low of 84.30. As we can see from the chart, this morning’s price action has broken both the 9 day and 14 day moving averages, suggesting that the short term bullish momentum of the last few days may be over in the short term, and for the move to continue higher, we will need to see a break above the 40 day moving average coupled with a breakout through the strong resistance at 86.45, which is where this move seems to have run out of steam once again. This region is now providing strong resistance to any move higher in the short term, with the moving averages now pointing to a move lower in the dollar index. You can keep up to date with the latest currency news, live news, latest currency prices on the currency charts, and the economic calendar, by following the appropriate link. Finally if you are looking for a good ECN broker I have provided more details above.