Home » USD index » Dollar Index Candle Chart 29 Sep 2009

Dollar Index Candle Chart 29 Sep 2009

USD Index 29 Sep 2009

USD Index 29 Sep 2009

With all the euphoria and expectation from the FOMC and G20 now a distant memory, life got back to normal yesterday for the poor old US dollar which once again remained submerged in a sea of bearish sludge at the bottom of the daily chart for the US dollar index, and ending the day indecisive and unloved with a long legged doji candle which closed marginally above the 9 day and 14 day moving averages. Whilst Thursday’s strong performance was a welcome relief for the US dollar, the follow through as been less than convincing, with both Friday and yesterday’s price action failing to add any further bullish tone to this short term boost. Indeed with a doji candle now in place, we can assume that the ‘rally’ is almost over and expect a return to the status quo shortly, with a continuation in the decline of the US dollar, until the FED signals that a change in interest rates is likely in the foreseeable future. Until then the US dollar will continue to the currency of the carry trade, having replaced the one popular Japanese yen in the ‘ultra low’ interest rate competition, and with the chart remaining heavily bearish only a break and hold above the 81 price point will signal a revival in fortune for the US dollar – this seems a long way away at present with 71 or 72 far more likely to the downside in the short term!

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