USD Index 21 June 2010

A negative week for the dollar index which saw the index fall below 85 on the daily chart and marginally breaking below the 40 day moving average which is now poised at an interesting level.  In this morning’s early trading the index has moved below this average suggesting a possible continuation of the recent negative US dollar sentiment, a view which is further confirmed by the 9 day moving average which is now crossing below the 14 day and clearly indicating a bear signal.  With plenty of deep water to the 200 day moving average it is unlikely that we will see a deeper retracement and a more likely scenario is that the price support at 84.50 and below should provide a sufficient cushion for the index to prevent any further falls.  Any recovery will then require a break and hold above the 40 day moving average once again and a reversal of the 2 short term indicators.

Currency Trading :

Markets fear sell T-Bill sell off as China ends currency freeze

USD Index Candle Chart 14th June 2010

The dollar index stalled last week pulling back from its recent strong performance and traded marginally lower each day in a series of small, downwards steps.  Friday’s price action found support from the 14 day moving average but in today’s early trading the index has broken below this key level suggesting that we may see a period of bearish sentiment reflected in the index short term.  The key indicator now is the 40 day moving average which currently sits at 85 but provided this offers a platform of support, as expected, then any move lower by the dollar should only be a temporary one.

What is one of the best retail forex trading platforms?  In my view it is Metatrader 4.  Advanced, powerful & intuitive it now comes with ECN execution, so you can happily scalp away without broker or dealer intervention.  Just download your free demo copy of MT4 by following this link – download metatrader free –  and get started today.  Don’t forget to follow my daily posts for updates and analysis of the forex markets to help you with your forex trading – so good luck and good trading.

Forex Trading News

Switzerland – the new currency manipulator

USD Index 7th June 2010

Friday’s wide spread up candle on the daily dollar index chart propelled the US dollar against a basket of currencies, finally breaking out of the recent pennant formation which had been forming in the 87 price area.  Friday’s break out is significant as it signals a reaffirmation of bullish sentiment on the daily dollar index chart as we now look set to attack the 89.62 area, last seen in February 2009 where that particular rally failed.  The monthly chart, along with the weekly chart, are both looking firmly bullish with a double bottom pattern now well established on the former.  The longer term target for the index is now 92.63 and should this point be breached then expect to see a run towards the next top at 99.49 and then on towards the psychological 100 price handle.

This bullish sentiment is further confirmed on the monthly chart with the 9 month moving average now crossing above both the 14 and 40 month moving averages, adding further weight to this positive view.

What is one of the best retail forex trading platforms?  In my view it is Metatrader 4.  Advanced, powerful & intuitive it now comes with ECN execution, so you can happily scalp away without broker or dealer intervention.  Just download your free demo copy of MT4 by following this link – download metatrader free –  and get started today.  Don’t forget to follow my daily posts for updates and analysis of the forex markets to help you with your forex trading – so good luck and good trading.

Forex Market News :

Debt fears drives euro lower

USD Index 27 May 2010

The dollar index continues to remain bullish and despite yesterday’s modest pause in the 87.25 region the long term outlook still remains positive.  This was further evidenced yesterday with the low of the session finding solid support from the 9 day moving average.  This is further confirmed by all four moving averages on the daily chart which are now pointing firmly higher and the only issue in the longer term is the near term resistance at 88.50 and beyond and once we are clear of this area then we can expect to see the dollar index run towards 92.32 and above with a consequent strengthening of the dollar against all major currencies as a result.

What is one of the best retail forex trading platforms?  In my view it is Metatrader 4.  Advanced, powerful & intuitive it now comes with ECN execution, so you can happily scalp away without broker or dealer intervention.  Just download your free demo copy of MT4 by following this link – download metatrader free –  and get started today.  Don’t forget to follow my daily posts for updates and analysis of the forex markets to help you with your forex trading – so good luck and good trading.

Currency Market News

Euro rallies as China moves to reassure Eurozone

Traders move to price in fall in renminbi