Home » USD index » US Dollar Index 16 Nov 2009

US Dollar Index 16 Nov 2009

Dollar Index Chart 13 Nov 2009

Dollar Index Chart 13 Nov 2009

There always comes a point in any technical analysis of a daily chart, when you run out of things to say, and I am rapidly approaching that point with the Dollar Index Chart, which continues to grind ever lower as each week passes. Thursday’s brave attempt to struggle higher with a wide spread up candle was promptly squashed on Friday with a down bar, which was hardly a great surprise as the previous day had found significant resistance from both the 9 and 14 day moving averages, with Friday’s price action pushing the dollar index back below all three once again. In many ways the index mirrors the euro vs dollar daily chart as they correlate negatively, with the key indicator being the 40 day moving average. For the euro dollar of course it is providing strong support in the upwards trend, whilst for the US dollar index it is doing the exact opposite, pressing firmly down and acting as a significant barrier at any attempt to rise. With so much deep price congestion now above, and with the technical indicators all pointing lower, it is hard to see when the recovery in the US dollar will start – start it will, and probably when least expected, but for the time being the only glimmer of hope remains the 75 price handle which could provide a temporary platform in due course, but I wouldn’t hold my breath as this is a minor level, and my feeling is that the downwards trend will continue unabated in the short term.

Support & Resistance for US Dollar Index:

S1:  75.05   R1:  75.57

S2:  74.83   R2:  75.87

S3:  74.53   R3:  76.09

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