Home » Currency Option Trading » US Dollar Index – Daily Chart 18th June 2009

US Dollar Index – Daily Chart 18th June 2009

US Dollar Index - Daily Candle Chart For The Dollar Index 18th June 2009

US Dollar Index - Daily Candle Chart For The Dollar Index 18th June 2009

The dollar index, a key indicator of dollar strength or dollar weakness against a basket of currencies, continues to consolidate sideways in the 80 price region and with a marginal bias to the upside, suggesting that any return to strength of the US dollar is extremely fragile at present.  Yesterday’s narrow spread down bar found some support at the 9 day moving average closing fractionally below, with the low of the day also finding support at the 14 day moving average.  With the moving averages having crossed and with the technical support outlined above we may see a move higher in due course but for any such move to be sustained it will require significant momentum coupled with a break above the resistance now in place at 81 and a hold above the 40 day moving average.  For any longer term rally we need to see a move back above the 87 price point and supported by all three moving averages.

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