US Dollar Index - Daily Chart For US Dollar 25th June 2009
Following the somewhat anodyne statement from the FED last night markets decided to favour the US Dollar once again and the Dollar Index duly closed with a reasonably wide spread up bar which managed to hold fractionally above both the 9 and 14 day moving averages. However, due to the current sideways consolidation and the subsequent intertwining of these averages this signal carries considerably less weight than unusual. The candle only had a mildly bullish tone because its upper shadow failed to breach the 80.9 price level which now seems to be creating a significant level of resistance and only a firm break above here would suggest that there is any prospect of a bounce higher. For any sustained Dollar strength we need to see several things occur, starting with a hold above the level outlined above, followed by a breach of the 40 day moving average and coupled with penetration at the 83 to 86.50 price points. If these factors manage to combine we could well see a return of strength to the US Dollar in due course.
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