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US Dollar Index 24 March 2010

USD Index 24 March 2010

Yesterday’s narrow spread up candle on the USD index daily chart once again probed the 81 price point closing well above all four moving averages and suggesting once again that the bullish tone for the dollar remains firmly in place.  This has been duly confirmed in this morning’s London trading session with a sharp breakout above the sideways price action of the last 2 months which if confirmed with a hold above 81.50, should now signal a strong move higher for the index and consequent and continued strength for the US dollar.  The next area of price congestion now awaits in the 83.60 region and extends to a high of 88.50 so any recovery will require a sustained effort to break through these deep areas of resistance.  In the short term expect the index to run higher through relatively calm waters on towards a re-test of the underside of this area at 83.50 and above.  On the weekly chart the 9 week moving average is now crossing above the 200 week giving us a strong bullish signal for the medium term.

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