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US Dollar Index – Daily Chart 20th March 2009

US Dollar Index - 20th March 2009 Daily Candle Chart

US Dollar Index - 20th March 2009 Daily Candle Chart

The wide spread down bar of yesterday simply added to the bearish sentiment in the US dollar index, which closed above the low of the day at 83.24. In trading this morning the index was again down, but has since recovered slightly, and following two such wide spread bars, this comes as little surprise as the market takes a breather from the downwards spiral. To see any reversal to the current trend we will need to see some significant signals in the next few days, with the index now heavily bearish, with very little support in the way to prevent a fall back to the 80 region and possibly as low as 78.25 in the next week if this trend continues. All the moving averages are now pointing lower, and we will need some dramatic and meaningful news in the markets to stem the tide at the moment.