US Dollar Index - Daily US Dollar Chart 24th June 2009
Yesterday was a classic example of the markets selling the rumour and today could be the second element of this aphorism, namely buy the fact. The US Dollar was soundly trashed by comments from various members of the ECB talking up the Euro in the face of hard economic facts in a desperate attempt to manipulate the market and as a result yesterday’s candle on the Dollar Index chart ended as a wide spread down bar closing below both the 9 and 14 day moving averages which have now converged once again. The high of the day failed to penetrate the 81 price point and closed marginally above 79.90 suggesting that any support that the Index may have found in the last couple of weeks is ill founded. With the FOMC statement widely expected to be Dollar negative we may well see a further plunge and typical knee jerk reaction in the Index later this evening once the statement has been released. Certainly from a technical perspective this would seem to be the likely direction given yesterday’s price action. However, a word of caution, when something seems so inevitable often the reverse occurs.
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