Home » Currency Option Trading » US Dollar Index – USD Daily Candle Chart 29th July 2009

US Dollar Index – USD Daily Candle Chart 29th July 2009

US Dollar Index - Daily Candle Chart 29th July 2009

US Dollar Index - Daily Candle Chart 29th July 2009

The poor old US dollar finally found some support yesterday on the dollar index daily chart, giving US dollar bulls something to cheer about at long last, after the long slow decline of the last few months. Technically, yesterday’s candle ended the currency trading session as a long legged doji, indicative of indecision in the market, and representative of a battle between the bulls and the bears, suggesting a possible turning point. Of course one swallow doesn’t make a summer, however, it is very interesting to note that the low of the day, found support at precisely the same level as in early June where we saw the previous bounce occur. As I outlined in yesterday’s market analysis, had this level failed to hold, then we would be looking at a much deeper move and a collapse in US dollar confidence. Whilst it is far to early to say, this is the first signal for some time that confidence and strength may be returning to the US currency. Technically however we will need to see a break and hold above all three moving averages, coupled with a breach of the deep resistance between 79 and 81, before this can be considered as a sustained recovery.

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