Home » Currency Option Trading » US Dollar Index – Daily Chart For Trading Currency Options 21st April 2009

US Dollar Index – Daily Chart For Trading Currency Options 21st April 2009

US Dollar Index - Daily FX Chart 21st April 2009

US Dollar Index - Daily FX Chart 21st April 2009

Yesterday’s candle on the US dollar index provided several important pointers as to the likely future direction for both the index itself and the US dollar, in particular.  First the open of yesterday was gapped up or as the Japanese would say we saw a “rising window”, a clear signal of momentum in the move higher.  Secondly the candle broke out from the triangle pattern on the daily chart which had been forming since late March, once again suggesting a move higher.  Thirdly, the price broke above and was sustained by the 40 day moving average with all three averages now supporting the move up, and finally the break also cleared the strong resistance at the 8600 price level.  All these factors combine to give us a strongly bullish view on the US dollar in the short term and we can now expect a move higher to re test the index at 8950 in due course.

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