Home » USD index » US Dollar Index 19 Feb 2010

US Dollar Index 19 Feb 2010

Dollar Index Chart 19 Feb 2010

At last a significant day for the dollar index following 2 weeks of sideways price action, which finally broke dramatically above the 80.50 price point ending the trading session as a wide spread up candle with a small wick to the lower body. Yesterday’s price action duly confirmed Wednesday’s bullish engulfing signal which has now re-established the bullish momentum for the US dollar and having now broken above this key level we should expect to see further strength in the dollar as the index attacks the next level of resistance in the 82 to 83 price zone.  Yesterday’s move higher is fully supported by all of our short term moving averages with the low of the trading session finding strong support from the 9 day moving average.  The strong upwards move was largely triggered by the unexpected announcement from the FED of an increase in its discount rate which sent both the eurodollar and cable through the floor.

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Fed raises discount rate