Daily Chart For The US Dollar Index - 26th June 2009
Despite a gapped up open in yesterday’s Dollar Index this positive signal was quickly extinguished during the trading session and failed to deliver on its early promise, ending the day on a down bar which closed below both the 9 and 14 day moving averages. This lacklustre performance merely served to reinforce the sideways consolidation that we have now seen for some time in the 78 to 81 price region and at present there seems little sign of any momentum which may propel the index one way or the other. Indeed the only thing one could say is that there is a possible bias to the downside now that the daily price has moved all three moving averages. The key to any upwards move will be a close and hold above the strong resistance now in place at the 81 price point but should we see a breach of the 78.50 level then this could open the way to a deeper move, possibly as low as 71 last seen in early 2008.
US Dollar Weekly Index Chart - 26th June 2009
Indeed a check on the weekly chart would tend to confirm this bearish view which now has three consecutive weeks of candles with deep upper wicks all of which have bounced off the 9 week moving average. In conclusion a fairly gloomy outlook for US Dollar bulls in the short and medium term.
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