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US Dollar Index – Weekly Chart 23rd March 2009

US Dollar Index - Weekly Candle Chart 23rd March 2009

US Dollar Index - Weekly Candle Chart 23rd March 2009

Last weeks wide spread down candle probably adds little to our analysis that we are not already aware of from our daily charts for the dollar index, with the index closing below both the 9 week and 14 week averages, and with all three now pointing to a move lower. There is little in the way of support on the weekly chart and for any pronounced move lower we will need to see the 40 week moving average breached in due course. The influencing factors at present are complex and complicated making technical analysis extremely difficult at present, and with the daily stream of speeches, bank bailouts, quantitative easing programs, and toxic asset protection schemes now being suggested almost daily, it is not going to get any easier in the short term. Clearly from the index the outlook at present is bearish, and given the lack of any clear support we could see the index fall as far as the 77 – 78 region. This mornings speech from Tim Geithner is hardly likely to improve the situation with further US dollar weakness expected as a result.

This is an extremely busy week with a crowded economic calendar, with a raft of economic data and speeches throughout the week, so I expect the markets to be volatile. For the latest currency news, the live news, or live prices on the currency charts please just check these out by following the appropriate links.