Home » Currency Option Trading » US Dollar Index – Trading Currency Options 27th April 2009

US Dollar Index – Trading Currency Options 27th April 2009

US Dollar Index - Daily Chart 27th April 2009

US Dollar Index - Daily Chart 27th April 2009

Thursday and Friday’s wide spread down bars on the dollar index provided an instant reversal to Monday gapped up candle which suggested that the break out from the pennant of the last few weeks would see a continuation of dollar strength in the currency markets.  Thursday’s candle was particularly decisive breaking through all three moving averages and closing below the 9 day which was accompanied by further dollar weakness on Friday taking the index back down to 84.70 on the week, but it is interesting to note that Friday’s low bounced off the same price point of 84.50 as of 2 weeks ago, suggesting this region may provide some support to a reveral in due course.

With all three moving averages now pointing lower it would appear that a period of dollar weakness may be on the horizon but with little fundamental news on the economic calendar for today this may only be confirmed later in the week when we have a slew of economic numbers coupled with the FOMC rate statement on Wednesday.  In addition all the markets are now reacting to the swine fever outbreak which may be the precursor to a global pandemic which could have serious implications for us all. You can keep up to date with all the latest fundamental news, latest currency news and live currency charts by simply following these links.  In addition I have also included details of an excellent ECN broker.