Home » Currency Option Trading » USD Index – Dollar Index Chart 4th September 2009

USD Index – Dollar Index Chart 4th September 2009

Dollar Index Chart 4 Sep 2009

Dollar Index Chart 4 Sep 2009

The USD index continues to bump along the bottom, desperately trying to find a foothold and some support at the current price level, as it attempts to build a position from which to rally higher and recover from the downwards decline of the last few months. The signs however are not good, with yesterday’s price action negating most of the gains of Wednesday, and once again closing the trading session below the 9 and 14 day moving averages, and just above the 40 day average. Technically the USD index daily chart remains very weak, and only a break and hold above the 81.50 price level will signal that a possible recovery is likely, supported by all three moving averages. Until we see this occur, then the outlook is bleak for the US dollar, but with today’s NFP data due for release in the US later, will either provide the spark that the dollar index desperately needs in order to kick start a recovery in the fortunes of the US dollar, or simply drive it further down.  With the US and Canadian markets closed on Monday for a national holiday, we may have to wait until later in the week to see any follow thorough from today’s numbers, but should the index close below the current floor at 77.50, then this will signal a much deeper decline for the US dollar and a subsequent move lower for the index.