Home » USD index » US Dollar Index 23 March 2010

US Dollar Index 23 March 2010

Dollar Index Chart 23 March 2010

The dollar index is delicately balanced at present as it continues to probe the 81 price area once again, a critical level where the index has already stalled twice in the last 2 months.  Last week’s reversal pattern where we saw the 40 day moving average provide good support, was an encouraging signal for dollar bulls with the index duly breaking and holding above all four moving averages once again.  Overall the outlook for the index still remains bullish and provided we see a break and hold above 81.50 in the short term then we should expect to see the US dollar strengthen further as a result as the index climbs away from this tricky area.  On the weekly chart there is still plenty of price congestion ahead but once the index pulls away from the current price action then we should have a clear run back towards 84 and marginally higher, before we run into any serious resistance which could cap the rally.

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