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Dollar Index Candle Chart 21 June 2010

Dollar Index

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.

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