Home » USD index » Dollar Index Chart 28 Oct 2009

Dollar Index Chart 28 Oct 2009

Dollar Index Chart 27 Oct 2009

Dollar Index Chart 27 Oct 2009

At long last US dollar bulls had something to cheer about yesterday, as the US dolllar index finally broke and held above both the 9 and 14 day moving averages, making it the third straight day of gains for the index, a feat we have not seen for some considerable time on the daily chart! However, before we get too carried away with this bout of bullishness for the dollar, technically the obstacles for any recovery are many and varied, and start with the resistance levels which are spread between the 76 and 8o price region. For any sustained or longer term recovery we need to see these levels breached, which could then provide the necessary platform for a long term rally, but it is also important to remember that the fundamental picture remains the same, with ultra low interest rates relegating the dollar to that of a low yielding currency for the carry trade. Until this picture changes with any indication from the FED regarding interest rates, then the status quo remains much the same and therefore any technical ‘recovery’ will always be governed by the fundamental backdrop.

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