USD Index - Daily Chart Dollar Index 10th September 2009
A defining day yesterday on the daily chart, as the USD Index finally broke below the 77.50 very platform outlined in previous posts, and closed the trading session with a wide spread down bar with a very small wick to the bottom of the candle. The USD index is now extremely bearish, with all three moving averages pointing sharply lower, and with only minor support between the current level and the next floor at 71, a deep move lower now seems likely for the US dollar, with the euro vs dollar already a major beneficiary of this sustained and continued dollar weakness. The weekly chart for the USD index paints a similar picture with the only question now being whether the support in the 71-72 price region will actually prevent a collapse in the US dollar. In the short term there is little but ‘fresh air’ on the daily chart, and over the next few days we are likely to see increasing momentum in the downwards move, as equity markets continue to draw investors into the market as their appetite for risk remains undiminished, and until this sentiment changes then the USD will continue to fall. This bearish picture has also been given impetus for the Chinese who are now offloading their US dollars in favour of gold, which triggered the recent breakout in gold prices of the last few days.
You can keep up to date with all the latest fundamental news on the economic calendar, latest currency news and live currency charts by simply following the links. I have also included details on an excellent ECN broker.
